Market Study ICT Sector India. - Switzerland Global Enterprise

Transcription

Market Study
ICT Sector India.
Edition October 2011.
osec.ch
Cover picture
UB City, Bengaluru - the IT hub of India
Title
Market Study – ICT Sector India.
Language
English
Number of pages
82
Author
Ms. Purnima Khandelwal, Director
InI Consulting Pvt Ltd
400072 Mumbai / Maharashtra
India
http://www.iniconsulting.in
Pulisher
Swiss Business Hub India
Osec Zurich
Contact: Alberto Silini, +41 44 365 5151, [email protected]
Edition
October 2011
Copyright
All copyright in this publication and related works is owned by Osec. The same may not be
reproduced, wholly or in part in any material form (including photocopying or storing it in any
medium by electronic means and whether or not transiently or incidentally to some other use of
this publication), modified or in any manner communicated to any third party except with the
written approval of Osec. This publication is for information purposes only. While due care has
been taken during the compilation of this publication to ensure that the information is accurate
to the best of Osec’s knowledge and belief, the content is not to be construed in any manner
whatsoever as a substitute for professional advice. Osec neither recommends nor endorses any
specified products or services that may have been mentioned in this publication and nor does it
assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed on this publication. Osec shall, in no way, be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed
or guidance taken from any portion of this publication.
Content.
EXECUTIVE SUMMARY
2
SECTION I: OVERVIEW
2.8.2.
E-Governance
51
2.8.3.
Agriculture
53
2.8.4.
Bio-informatics
54
1.1.
India
4
1.2.
ICT in India
5
SECTION III: OPPORTUNITIES FOR SWISS SMEs
1.3.
Indian IT-ITES, BPO
6
3.
1.4.
Electronics Hardware
9
1.5.
Telecom
10
SECTION IV: ACCESSING INDIAN MARKET
58
1.6.
ICT Research & Development
11
4.1.
Investment Environment
58
1.7.
ICT Penetration and Scope in India
12
4.2.
Key Issues and Requirements
60
1.8.
ICT Clusters in India
13
1.9.
Growth Potential & Growth Drivers
Opportunities for Swiss SMEs
55
SECTION V: CONCLUSIONS
for ICT in India
14
1.10.
Government Policies and Initiatives
15
1.11.
Technology and Business priorities
5.
Conclusions
62
SECTION VI: Annexure & References
64
for ICT in India
16
6.1.
Network Readiness Index for India
64
1.12.
ICT- Emerging Technologies
17
6.2.
Country Data
66
1.12.1.
Cloud Computing
18
6.3.
Demographic Trends
67
1.12.2.
Business Intelligence
19
6.4.
Key Macro-level Risks
68
1.12.3.
Mobility
20
6.5.
Major challenges and concerns for
1.12.4.
Social Media
21
1.13.
Opportunities in Indian ICT Sector:
Macro Outlook
ICT in FI are:
6.6.
E-governance projects initiated by
government of India
70
6.7.
Fairs and Events
71
6.8.
Regulatory and Trade Bodies
72
22
SECTION II: SUB-SECTOR PROFILES 24
69
2.1.
Health Care
23
6.9.
Abbreviations
75
2.2.
Animation and Gaming
26
7.
List of Tables
80
2.2.1.
Animation
27
8.
List of Figures
81
2.2.2.
Gaming
28
2.3.
Education
29
2.4.
Manufacturing
34
2.5.
Telecom
36
2.6.
Finance, Banking and Insurance
41
2.7.
Security
44
2.7.1.
Electronic Security and Surveillance
45
2.7.2.
IT Security Solutions
46
2.8.
Others
49
2.8.1.
E-Commerce
49
|1
Executive Summary
The Indian economy has grown at 7.5-8% per annum in recent
years and is expected to grow by 8-9% in 2011. India’s economy
has been fuelled by the growth in the technology sector in last
two decades. A large part of this growth has been dependent on
the “outsourcing” or “off shoring” of key business processes and
software development (and related services) including system
integration, IT consulting, application management, custom
applications, infrastructure management, software testing and
web development by large global corporations and governments.
Transformation and growth of the economy has created
opportunities not only in exporting software and services
but increasingly in the domestic market also. The sector has
JVU[YPI\[LK[VIL[[LYNV]LYUHUJLHUKLMÄJPLUJ`HUKHJ[LKHZH
catalyst for growth of various sectors across the Indian economy.
Switzerland also has strong ICT capabilities and offers ICT
organizations multilingual, highly trained personnel with extensive
experience in software development, telecom, Internet, logistics
and industrial applications. Many IT specialists are employed
in sectors such as banking, education, healthcare, logistics
and transportation, automation and consulting. However, it
is estimated that Switzerland would face a shortfall of 32,000
ZRPSSLK^VYRLYZPU[OLÄLSKI`1.
India’s rapidly growing ICT sector presents a potentially lucrative
market for Swiss SMEs. The Swiss ICT trade stood at USD
540 mn in 2010 which is a small percentage of the USD 73 bn
business conducted by the Indian ICT sector worldwide in 20101.
During the same year, India’s exports of software and IT-enabled
services to Switzerland rose to USD 450 mn from level of 350 to
TUYLJVYKLKPU[OLWYL]PV\ZÄUHUJPHS`LHY>OPSL[OL:^PZZ
market is dominated by highly specialized niche operators, it is
felt that there exists opportunities for SMEs from both countries
to interact and match their competencies and create a platform
to cater to the existing requirements of Swiss industry and tap
the Indian emerging opportunities.
Some of the Swiss ICT organisations with operations in India are:
NAME OF COMPANY
SECTORS
ORIGIN
ADASOFT AG
Software Development / IT Solutions
Switzerland
PIT Solutions GmbH
Software Development / IT Solutions
Switzerland
Schmid Telecom AG
Telecom
Switzerland
Swiss Re
Business Process Outsourcing
Switzerland
Omnisec AG
ICT Solution
Switzerland
ITPC AG
SAP Consulting
Switzerland
Swissnex India
R&D Centre
Switzerland
Some of Indian ICT organisations with operations in Switzerland are:
1
NAME OF COMPANY
SECTORS
ORIGIN
Sydaap Technologies Pvt. Ltd
Hardware and Softwares
India
Astra Infotech Pvt Ltd
Software
India
Aztec Software & Technology Services Ltd
Software
India
Triumph India Software Services Pvt. Ltd.
Software
India
Tata Consultancy Services Switzerland Ltd
IT Solutions
India
Wipro Technologies Ltd
IT Solutions
India
Hinditron Group of Companies
Information Technology solutions, Hardware
India
MindTree
IT Solutions, BPO
India
Swiss info.ch- June 8, 2011
2|
Ramco Systems
Software Products and Services
India
Infosys
IT Solutions, BPO
India
Ramsoft Technologies
Software Development
India
Patni Computer Systems
IT Solutions
India
HCL Technologies
IT Solutions, BPO
India
Mahindra Systems
IT Solutions, BPO
India
Evalueserve
Knowledge Process Outsourcing
India
This report provides a synopsis of the Indian ICT industry,
its constituents, growth drivers, factors driving its global
competitiveness, key technology trends, standards and labels
and the challenges/bottlenecks. It details out the opportunities
offered by the various sectors of the Indian economy and also
brings out the key issues and challenges that Swiss SMEs need
to overcome to make their India Business a success.
The Overview section provides the background information
about the Indian economy, the impact of ICT on Indian economy
and the key constituents of ICT industry viz. IT and ITES
sectors, BPO, hardware and Research & Development. It also
provides an overview of government policies, sectoral priorities,
technological imperatives, key geographical clusters, key growth
drivers and brief analysis of emerging technologies like Social
Media, Mobility, Business Intelligence and Cloud Computing.
Based on the growth potential and the capability of Swiss SMEs,
following sectors were shortlisted and detailed out in the report:
For each of these sectors, the report covers the status of industry,
key ICT applications, opportunities and challenges.
Finally a summary of the opportunities in each of these sectors
have been provided for Swiss SME as well as important issues
[VHJJLZZ[OL0UKPHUTHYRL[OH]LILLUPKLU[PÄLKPUJS\KPUNHIYPLM
background of government policies (FDI/ taxation/ incentives etc)
and practical business considerations.
Healthcare
Education
Banking, Financial Services and Insurance
Manufacturing
Telecom
Security and Surveillance Solutions
Bio-informatics
E-commerce
Animation and Gaming
E-governance
Agriculture
0[ PZ L]PKLU[ [OH[ ZPNUPÄJHU[ VWWVY[\UP[` L_PZ[Z MVY :^PZZ :4,Z
across various industry verticals both for utilizing India’s strength
in ICT sector to provide international products and services or
to tap the Indian domestic market. However, collaborations and
partnerships would be the key to handle the uniqueness and
complexities of Indian market arising out of its size, diversity,
culture, and business practices. Organizations would need to
have a long-term perspective. Execution capability, operational
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their business in India.
|3
SECTION I. Overview
1.1 India
Country Facts
India is the second largest country in the world, with an estimated
population of more than 1.21 bn. The Indian economy is one of
the fastest growing economies and is the 9th largest in terms of
GDP. In terms of purchasing power parity, the Indian economy
ranks fourth in the world.
India is one of the fastest growing large economies, and the ICT
ZLJ[VYPZHZPNUPÄJHU[JVU[YPI\[VY[V[OPZNYV^[O;OLJVU[YPI\[PVU
of the Indian IT and ITeS segment to national GDP increased
from 1.2%4 in 1997-98 to 5.8% in 2008-09, the Indian IT sector
is the major exporting sector and it employs more than 2 million
people.
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suppliers offer high quality products and services with state-ofthe-art technology and the sector is a beacon for the country.
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Purchasing Power Parity.
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and is expected to grow at steady rate of 8-8.5% till 20152.
ECONOMIC STRUCTURE3
Main Economic Indicators
Real GDP growth (%)
8.5a
*VUZ\TLYWYPJLPUÅH[PVUH]LYHNL
9.22b
Current-account balance (USD billion)
-26.91
Exchange rate (average, INR : USD)
48.32c
Population 2011 (billion)
External debt (Year-end; USD billion)
a
b
1.21
238d
2010-11
July 2011
c
Calendar Year 2010
d
December Year 2010
OECD Forecast
Government of India – Economic Survey 2009-10, www.forecast-chart.com, www.x-rates.com OECD (2009), OECD Economic Outlook, Number 85, June, OECD (2010b),
OECD Economic Outlook, Number 87, May, OECD (2010a), OECD Information Technology Outlook 2010.
4
RBI Deputy Governor Speech
2
3
4|
1.2 ICT India
ICT refers to an expanding assembly of technologies that are
used to handle information and aid communication. These include
hardware, software, media for collection, storage, processing,
transmission and presentation of information in any format (i.e.,
voice, data, text and image), computers, the Internet, CD-ROMs,
email, telephone, radio, television, video, digital cameras etc.
The Indian ICT sector has evolved in three phases: 1947 ¶ HUK WVZ[ 0U [OL ÄYZ[ WOHZL \UKLY
the closed economy, the state tried to run the industry which
led to miniscule development in commercial sector. No great
differentiation between software and hardware was seen in
this phase. During the period 1984 and 1990, the government
realized that software was a viable option for income generation
and technological capability enhancement. Post 1991 after the
opening of the economy, the software export industry grew
tremendously and was promoted by both national and regional
governments. However, the export-driven growth model ignored
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potential.
&
Over the last decade, India has entered in to a global leadership
position by transforming a USD 3.5 bn5 sunrise industry into
a USD 63 bn global IT-ITES-BPO powerhouse. Electronics
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As per NASSCOM, the Indian ICT industry contributes
about 6.1% to the national GDP, which is about 5 times of its
contribution about 10yrs ago. The export driven Software and
Services Industry continues to contribute most to the growth
of the sector. The Indian ICT sector is dominated by the larger
WSH`LYZ^P[O[OL[VWÄYTZJVU[YPI\[PUNV]LYVM[OL[V[HS
revenues.
While the ICT sector has been is growing in all domains, the
growth in the sector is predominantly driven by software services
and telecom services.
The ICT sector has been categorized as:
0;0;,:)76
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ICT, which broadly comprises Information Technology
*VTT\UPJH[PVUZJHUILJSHZZPÄLKPU[V[OLMVSSV^PUNZLJ[VYZ!
- IT, ITES BPO (Software)
- Electronic Hardware
- Telecommunications
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5
Figure 1: Indian IT sector Revenues
Nasscom Report
|5
1.3. INDIAN IT-ITES, BPO
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process outsourcing over the past decade remains unparalleled.
India is currently regarded as the premier destination for the
global sourcing of IT, ITES & Business Process Outsourcing and
these sectors have seen tremendous growth in the past decade.
It is estimated that India has:
Total export revenues earned by ITES-BPO sector have grown from
USD 1.8 bn in 1997-98 to USD 49.7 bn in 2009-10, a CAGR of 35
%. The domestic IT-BPO sector is showing increased traction, too,
with growth from USD 1.4 bn in 1997-98 to USD 14 bn in 2009-10,
a CAGR of 22%6
ZOHYLVM<:+IU6 global technology services market
(IT Services, Engineering Services and R&D)
ZOHYLVM<:+IU6 Global Business Outsourcing Market
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/HYK^HYL
/HYK^HYL
(Value in USD Billions)
-@
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SERVICE LINES 6
FY08
FY09
FY19
IT Services
22.2
25.8
27.3
BPO
9.9
11.7
12.4
Software products/
Engineering
8.3
9.6
10
Total
40.4
47.1
49.7
-@
Figure 2: Indian IT Sector Export Revenue
0;:LY]PJLZ
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/HYK^HYL
(Value in USD Billions)
-@
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Figure 3: Indian IT Market Domestic Market Revenue6
6
CII-PwC Report Changing Landscapes and emerging Trends, Indian IT, ITeS Industry
6|
-@
SERVICE LINES 6
FY08
FY09
FY19
IT Services
7.9
8.3
8.9
BPO
1.6
1.9
2.3
Software products/
Engineering
2.2
2.7
2.8
Total
11.7
12.9
14
Key Markets
USA with 60% share remains the largest export market for
Indian IT-BPO services, incremental growth is being driven by
the European market, with UK and Continental Europe and with
NYV^PUN JVU[YPI\[PVUZ MYVT THYRL[Z HJYVZZ [OL (ZPH 7HJPÄJ
Over 600 Multinational Companies have been sourcing product
development and engineering services from their centers in India.
Banking, Financial Services and Insurance (BFSI) remains the
largest vertical sector in the IT-ITeS and BPO domain accounting
for over 40% of the Indian IT-ITeS exports in year 2009-10. Verticals
like Hi-tech /Telecom, Manufacturing and Retail are increasingly
gaining share.
Major Export Destinations (share in %)
Composition of Industry Verticals in Exports
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Figure 4: Composition of Industry Verticals in IT Exports
Figure 5: Major IT Export Destination
Market Structure: The Indian IT- BPO industry has organisations ranging from large Indian and multinational corporations to
start-up and emerging companies.
TYPES OF FIRMS
NO. OF FIRMS
EMPLOYEES
MAJOR PLAYERS
Large-sized players
Seven, each with revenues
more than USD 1 billion
40,000 and above
0UKPHU4\S[PUH[PVUHSÄYTZ
Mid-size players
75-80, each with revenues in
the range of USD 100 million
- 1 billion
5000-40,000
4\S[PUH[PVUHSÄYTZ
Emerging players
300-350, each with revenues
of USD 10-100 million
100-5000
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multinationals
Small/ Start-ups
More than 3500, each with
revenue less than USD 10
million
less than 73
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Table 1: Structure of Indian IT-BPO Industry
|7
Key Growth Drivers
The key factors that are driving the growth of the IT-BPO industry in India are:
GLOBAL MEGATRENDS
IMPLICATIONS FOR INDIA
Macro-economic
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7LY*HWP[HPUJVTLVM0UKPHUZOHZKV\ISLKV]LY[OLSHZ[`LHYZ
Social and Environmental
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24% by Dec 2007; likely to increase to 62% by 2013
0U[LYUL[JVUULJ[P]P[`PZHSZVSPRLS`[VPUJYLHZL^P[OH]HPSHIPSP[`VMZWLJ[Y\TMVY.HUK>P4H_
Business and Technology
0UJYLHZLK\ZLVM[LJOUVSVN`HUK)76V\[ZV\YJPUNPU0UKPHUJVTWHUPLZ
,TLYNLUJLVMPUUV]H[P]LI\ZPULZZHUKZLY]PJLKLSP]LY`TVKLSZLN:HH:JSV\KJVTW\[PUN
0UJYLHZLKPU]LZ[TLU[PU[LJOUVSVN`HUK)76I`JLU[YHSHUKZ[H[LNV]LYUTLU[Z
Table 2: Key Trends for Growth of IT-BPO Industry in India
While India holds a dominant share of the global offshore ITBPO sector, yet, at USD 49.7 bn in 2009-10, Indian IT-BPO
exports account for less than 3 percent of the global spend on
IT-BPO. There is tremendous possibility for growth in future. Over
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several global macro-economic, demographics, social, business
and technological trends that would shape the face of global
business.
7
Nasscom-Mckinsey Perspective 2020
8|
Given the backdrop of large untapped demand potential and
strong fundamentals, India is uniquely positioned to secure global
leadership, grow its IT-BPO exports at an annual rate greater than
13 percent, and generate export revenues of USD 82 bn, and
domestic revenues of USD 23 bn by 20147.
1.4 Electronics Hardware
The electronics industry includes semiconductor design, hightech manufacturing, electronic components, EMS, and electronic
systems design for consumer electronic products, telecom
products and equipments, and IT systems and hardware.
The revenue from Indian IT hardware segment increased from
USD 8.5 bn in 2006-07 to USD 9.4 bn in 2009-10.
Following table shows the breakup across the electronics hardware industry and their growth rates:
ELECTRONICS HARDWARE SUB-SECTORS
KEY SEGMENTS
CAGR
Industrial Electronics
Products for various Sectors e.g. Energy, Transportation,
Automation Systems etc.
11.6%
Computers
PCs & IT Products
10.5%
Communication & Broadcast Equipment
DTH, Communication Equipments, Broadband etc
53.7%
Strategic Electronics
Satellite based, surveillancesystem, internal security
system and defense, aerospace and nuclear Sectors
22.7%
Components
Electronics Components for mobile, CRT TVs etc.
9.0%
Table 3: Electronic Hardware Industry CAGR8
Growth Potential & Growth Drivers
for Electronic Hardware
The demand for electronics hardware is being fuelled by the
relatively high growth rate of the Indian economy coupled with the
large middle class in India with increasing disposable incomes.
Supply is not keeping pace with demand in India, resulting in
ever-increasing imports from China, Taiwan, South Korea etc.
India is gradually building a hardware manufacturing base but the
electronic hardware industry in India is still orientated towards the
domestic market. The market is fragmented, lacks a component
IHZL HUK OHZ PUMYHZ[Y\J[\YHS IHYYPLYZ ^P[O OPNO JVZ[ VM ÄUHUJL
and high technological obsolescence. The electronics hardware
industry is highly import-dependent. Given that consumption is
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At the current pace, the demand supply gap is projected to
increase from USD 25 bn in 2009 to USD 298 bn in 20209.
Expected Domestic Demand for Electronics in India
Expected Export of Electronics in India
Source: Industry
Estimates
-@
-@
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Projected demand-supply gap in Electronic Industry
-@
-@
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Figure 6: Demand Supply Gap and Projected Growth of
Electronics Industry
-@
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The electronics industry has the potential to leapfrog India to
next generation of technology adoption and holds immense
transformational potential for various industry verticals.
8
Source: Industry Estimates
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9
Annual Report 2009-10 Ministry of Communications & Information Technology, India
Task Force Report Dec 2009-Ministry of Communications & Information
Technology, India
|9
1.5. TELECOM
India is the world’s second-largest telecom market. The total
subscriber base (including wire-line and wireless) reached
787.28 million10 in December 2010. The wireless segment has
been registering monthly mobile additions of about 15 to 20
million subscribers. 11
The wireless subscriber base in India grew from FY00 through
FY10 at a compound annual growth rate (CAGR) of 77.5% to
reach 584.3 million subscribers in FY1011. This number reached
752.19 million subscribers December 2010.10
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In FY10 telecom sector has been the major contributor to the
services sector contributing nearly 3.6% of the total GDP.
From FY05 through FY10, the number of internet and broadband
subscribers has increased at a CAGR of 23.9% and 117.5% to
reach 16.2 mn and 8.8 mn11 respectively in FY10.
Gross Revenue - Indian Telecom Sector
-@
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Figure 7: Gross Revenue Indian Telecom Sector
10
11
TRAI Press Release February 2011 nnual Report 2009-10 Ministry of Communications & Information Technology, India
EnY and FICCI Report 2011
10 |
1.6. ICT Research & Development
The entry of R&D centers into India started in the mid-1980s
I\[P[NHPULKTVTLU[\TVUS`PU[OLTPKZHM[LY0UKPHUÄYTZ
successfully demonstrated that they could deliver large software
projects. Over 600 Multinational Companies have been sourcing
product development and engineering services from their centers
in India.
4\S[PUH[PVUHS ÄYTZ KVTPUH[L PU [OL PUUV]H[PVU ZWHJL [OYV\NO
[OLPY0UKPHU9+JLU[LYZ4VZ[VM[OLT\S[PUH[PVUHSÄYTZMVSSV^
the conventional outsourcing model: they enter India as a cost
centre which then evolves into a technology centre.
Large domestic players also provide ‘engineering services and
R&D and software products’ wherein they undertake product
development activities performed for external clients. These
services contributed USD 8.6 bn and constituted around 13% of
total industry revenues in 2008. Over 74% of engineering services
and R&D and software products revenue is from exports12.
THE R&D CENTERS OF IT MNES HAVE THE
FOLLOWING SPLIT:
ZLY]PUNHZJLU[LYMVYNSVIHS
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European Union countries is very limited.
The R&D centers run by MNCs are categorized as:
1. Centre for Global-Cater to the requirements of the
global market.
2. Local for Locals- Adapt their product to local needs like
developing software in Indian languages or providing services
to telecom players to exploit the Indian market by product
adaptations to meet local needs in India.
3. Local for Global- Established as part of a strategic decision
and complement the global technology development effort of
the MNCs. These centers work on “mainstream research” by
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SOME OF THE NOTED R&D ORGANIZATIONS ARE:
a. Centre for Development of Advanced Computing (C-DAC) of
the Department of IT & Communications which carries out
R&D in IT, Electronics and associated areas
I4LKPH3HI(ZPHHUV[MVYWYVÄ[JVTWHU`VM[OL+LWHY[TLU[
is innovating for digital inclusion with an aim to bring the
ILULÄ[ZVM0*;[VKHPS`SP]LZVMJVTTVUTHU
c. C-MET, IITs, IISc, CSIR labs, IIITs, CEERI-Pilani, Jadavpur
University – Kolkata, Anna University-Chennai are some of
the prominent academic and research institutions taking up
R&D work in ICT sector in India
12
Trends in Public and Private Investments in ICT R&D in India by JRC-IPTS, 2011
| 11
1.7. ICT Penetration & Scope in India
Following three parameters indicate ICT penetration in India:
1. PC Penetration13 - PC penetration in India was at 4% of its
population in 2009, compared with 20% in China, 89% in the
US and 98% in Japan. Low PC penetration is primarily due
to the issue of affordability.
3. Mobile Penetration- Mobile phone penetration stood at 63%
with 752 million subscribers in December, 2010 according
to the Telecom Regulatory Authority of India. About 15%
of Internet users in India access the Web through their mobile
handsets—“a trend likely to pick up with the increased takeoff in smartphones and the advent of 3G.”
2. Internet Penetration- India has low Internet penetration at
less than 7% of its population. However, this is expected to
change due to its fast-growing telecom industry. By the end
of 2010, there were only 80 million Internet users and 11
million broadband users in the country. Low penetration of
PC in India is a huge barrier to Internet penetration.
It is estimated that every 10% increase in mobile penetration
contributes as much as 0.6% to the country’s gross domestic
product; an increase in Internet penetration makes a bigger
contribution. India is rated 4.0 in the Network Readiness Index
(NRI) by world economic forum and is ranked 48th among 138
countries.
Networked Readiness Index (NRI) is an index designed by the
World Economic Forum which measures the propensity for countries
to exploit the opportunities offered by information and communications
technology. The NRI is a composite of three components in which the
individual countries are ranked upon:
ò;OLV]LYHSSLU]PYVUTLU[Z\IPUKL_MVY0*;HUKPUUV]H[PVUVMMLYLK
by a country includes market conditions, regulatory framework and
infrastructure (both human and physical). India has a score of 3.9
in this sub-index with an overall rank of 58.
ò;OLYLHKPULZZZ\IPUKL_VM[OLJV\U[Y`»ZRL`Z[HRLOVSKLYZ
(individuals, businesses, and governments) which gauge the
preparation and willingness of the three stakeholders to adapt and
13
Citi Investment Research and Analysis September 2010 report
12 |
use ICT in their day-to-day activities. India scores 4.8 in this subindex with a World rank of 33.
ò;OLL_[LU[VM\ZHNLVM0*;Z\IPUKL_YLÅLJ[Z[OLWLUL[YH[PVU
usage of ICT amongst the economy’s chief stakeholders. This subindex progressively evolves towards capturing ICT impact in terms
of inclusive society, business innovation, and better governance.
India scores 3.3 in this sub-index ranking 67th in the world.
The overall NRI of India in 2010-11 is 4.0 and India is ranked 48
among 138 countries.
1.8. ICT Clusters in India
;OLNYV^[OVM[OL0UKPHU0*;ZLJ[VYOHZILLUHJYVZZKPMMLYLU[JP[PLZVM[OLJV\U[YÌ\[JVUJLU[YH[LKPUZWLJPÄJYLNPVUZ
The table below details out the different clusters:
DIMENSION
BANGALORE
DELHI NCR
CHENNAI
HYDERABAD
PUNE
MUMBAI
CLUSTER
DENSITY
Dense
Dense
Dense
Dense
Dense
Dense
CLUSTER
BREADTH
Broad (potential
for ICT, Bio-IT)
Broad
Broad (potential
for ICT)
Broad (potential
for ICT)
Broad (potential for
ICT, Bio-IT)
Broad
ACTIVITY
BASE
Activity-rich along
the value chain
in IT services,
software, ITeSBPO, R&D,
hardware
Activity-rich
along the value
chain: BPO,
IT services,
software, R&D,
hardware
Activity rich,
strong application
and system
software, strong
hardware, ITeSBPO
Activity-rich
along the
value chain in
IT services,
software, ITeS,
strong in chips
Very active in product
development, R&D –
intellectual proeperty
hub, IT services
presence
Activity- tich
along the
calue chain
in IT services,
software, ITeS
hardware
ANCHOR
COMAPANY
COMPUTER
HARDWARE
Solectron
(personal Internet
device for AMD)
MRO-Tek 2
(manufacturing
plants for
network/telecom)
Flextronics (set
top boxes for
Glalxis)
Wipro (PC and
laptops), IMP/
Lenovo (Pc and
laptops), TVSE
(printers and
peripherals)
Semicom
and AMD
(projects for
semi-condictor
manufacturing)
Not Available
Kobian
(motherboards
and graphics
boards) PCS
(PC and
laptops)
ANCHOR
COMPANY IT
SERVICES,
SOFTWARE
AND R&D,
ITES-BPO
Infosys (HQ),
Wipro (HQ), Digital
Gloabal Soft (HQ)
HCL (HQ),
Hughes (HQ),
Genpact,
Samsung
Polaris (HQ), NIIT
(training – HQ)
Mahindra
Satyam (HQ)
Compulink systems
Pvt LTd (HQ), centres
of Infosys, TCS, WNS,
Honeywell etc
TCS (HQ),
iGate-Patni
(HQ), Tata
Infotechltd,
Sglobal Telesystem
INNOVATIVE
CAPACITY
High
High
High
High
High
High
Combination of
foreign-owned
and locally owned
ÄYTZ
:PNUPÄJHU[
share of local
small and
medium-sixed
enterprixes,
presence of
mulitnational
and Indian top
companies
Combination of
foreign-owned
and locally owned
ÄYTZ
Combination of
foreign-owned
and locally
VÛLKÄYTZ
:PNUPÄJHU[ZOHYL
of local small and
medium-sixed
enterprixes, presence
of mulitnational and
Indian top companies
Combination of
foreign-owned
and locally
VÛLKÄYTZ
OWNERSHIP
STRUCTURE
Sahara
(Computer, PC
and peripherals)
Samsung
(monitors)
Table 4: Domestic ICT Clusters
| 13
1.9. Growth Potential & Growth Drivers for ICT in India
The key driving factors for India’s growth in ICT are cost effectiveness, quality assurance, supply of technical graduates, availability of an
adequate telecommunication infrastructure and a favorable time zone relative to the United States and Europe.
;OLZWLJPÄJ[YLUKZWVPU[PUN[VNYV^[OVM0*;HYL!
TRENDS
IMPLICATIONS
Macroeconomic and
demographic trends
Shifting centers of economic activity–GDP of Asia and Europe will converge working age population
shrinking in key developed countries (e.g., Japan, Italy, US).
Social and environmental
trends
Increased Internet and mobile connectivity would transform the way people live and interact.
Business and technology
trends
Technology has been radically transforming the way traditional corporations and governments
function. This will lead to new opportunities, in addition to the key focus areas, which has
been largely untapped so far. While the core market for BFSI, telecom, retail, pharmaceuticals,
manufacturing and travel will continue to grow over the next 10 to 15 years, driven by growth in the
JVZ[IHZL[OLPUK\Z[Y`^PSSILYLKLÄULKHSVUNMV\YRL`KPTLUZPVUZ
New services in core
markets
Beyond the cost-based growth there is still further growth potential in the core markets described
above. Going forward, the industry can propose additional services to these core markets in
three ways:
- offer beyond-cost services, e.g., revenue enhancement, capital avoidance;
- suggest integrated manufacturing and services solutions e.g., end-to-end development of new
auto parts; and
- redesign and transform processes, leveraging automation
New verticals
Several verticals in developed countries, which have previously not globally sourced services, are
expected to do so in the next wave of growth. Driven by the megatrends, at least four new verticals
are expected to emerge by 2020 (public sector, healthcare providers, media and utilities). For
example, due to increased spending requirements on healthcare and pensions as a result of aging
populations, the public sector and healthcare providers will increasingly depend on technology and
services providers for solutions to reduce the cost to serve. Also, energy companies and utilities will
look for solutions to monitor and optimize their carbon footprint in line with emission requirements.
New customer segments
Enabled by mega trends such as increased digital connectivity and the availability of new delivery
WSH[MVYTZ[OLPUK\Z[Y`JHUL_WHUKP[ZPUÅ\LUJLIL`VUKSHYNLLU[LYWYPZLZ[V:4,Z;OLLTLYNLUJL
of new service offerings and business models (such as SaaS) will also allow players to serve smaller
LU[LYWYPZLZPUHU\UJVU]LU[PVUHSI\[WYVÄ[HISLTHUULY;OLPUK\Z[Y`JHUHSZVVMMLYKPYLJ[I\ZPULZZ
[VJVUZ\TLYZLY]PJLZZ\JOHZÄUHUJPHSOLHS[OJHYLHUK[YH]LSZLY]PJLZ[V[OLLTLYNPUNJSHZZVM
well-connected retail consumers.
New geographies
As economic growth expands into new markets, Asia will bypass Europe as the second largest
target market, led by India and China. On the back of greater adoption of technology and
outsourcing by enterprises, BRIC markets will become a sizeable target domestic outsourcing
market, with India and China accounting for almost 50 per cent of the opportunity.
;HISL!:WLJPÄJ[YLUKZWVPU[PUN[VNYV^[OVM0*;
14 |
1.10 Government Policies & Initiatives
By encouraging foreign participation in most sectors of the
economy, policy makers in India have placed special emphasis
VUP[ZPTWVY[HUJLHZIV[OHZV\YJLVMÄUHUJLHUKHMHJPSP[H[VYVM
knowledge and technology transfer. Few of the noted initiatives
by the government are:
ò*VW`YPNO[WYV[LJ[PVUHUKJÌLYSH^Z^LYLPUJS\KLKPU[OL
comprehensive Information Technology (IT) Act introduced
in 2000
ò*YLH[PVUVMZVM[^HYLWHYRZ:WLJPHS,JVUVTPJAVULZ:,AZ
and knowledge sector industrial estates with relaxed
regulatory and tax structures
ò0U[YVK\J[PVUVM0UMVYTH[PVU;LJOUVSVN`0U]LZ[TLU[9LNPVUZ
(ITIRs) schemes in 2008 under which each state in India
can set up an integrated township for facilitating growth of IT /
BPO, with provision of world-class infrastructure, supported
by investor-friendly policies.14
STP’s – Business parks which are aimed at providing favourable
business climates for software exports. The major features of STP’s
are:
- Immediate approvals
- 100% Foreign Equity
- Imports of Hardware & Software are duty free
- Exempted from payment of corporate income tax for
a duration
Such STP’s contribute more than 70% of the revenue to the
industry.
14
Ministry of Communications and Information Technology (2010), http://www.mit.gov.in/content/einfrastructure-0
| 15
1.11. Technology & Business Priorities for ICT in India
Growth of Indian IT sector has been possible due to the quality
HZZ\YHUJL WYV]PKLK I` [OL ÄYTZ [OYV\NO NSVIHSS` YLJVNUPaLK
X\HSP[` JLY[PÄJH[LZ SPRL [OL JHWHIPSP[` TH[\YP[` TVKLS *44
and ISO series. The transition from onsite to offshore shows
[OL L]VS]PUN WYVQLJ[ THUHNLTLU[ JHWHIPSP[PLZ VM 0UKPHU ÄYTZ
An increasing number of IT-BPO companies continue to adopt
global standards such as ISO 9001 (for Quality Management)
and ISO27000 (for Information Security). India-based centers
IV[O 0UKPHU ÄYTZ HZ ^LSS HZ 45*VÛLK JHW[P]LZ HJJV\U[
MVY [OL SHYNLZ[ U\TILY VM X\HSP[` JLY[PÄJH[PVUZ HJOPL]LK I` HU`
ZPUNSLJV\U[Y`*LY[PÄJH[PVUZSPRL[OL0:60U[LYUH[PVUHS:[HUKHYKZ
Organization) and CMMi (Capability Maturity Model Integration),
TQM, 6 Sigma Quality (for defect and cycle time reduction),
eSCM (for continuous quality process enhancement), COPC,
P-CMM (People Capability Maturity Model), etc., are some of the
TVZ[ZV\NO[HM[LYX\HSP[`JLY[PÄJH[PVUZPU[OL0;0;,:ZLJ[VY
V\[VM *44JLY[PÄLKÄYTZHYLSVJH[LKPU0UKPH
-VSSV^PUNOH]LILLUPKLU[PÄLKHZ[OL[VWWYPVYP[PLZMVY0UKPHVU[OL)\ZPULZZHUK;LJOUVSVN`MYVU[PU[OL0*;ZLJ[VY!
TOP 10 BUSINESS PRIORITIES
RANKING
RANKING
Increasing enterprise growth
1
Cloud computing
1
Improving business continuity, risk and security
2
Mobile technologies
2
Reducing enterprise costs
3
Virtualization
3
Implementing and updating business applications
4
Enterprise resource planning (ERP)
4
Increased use of information/ analytics
5
Enterprise applications
5
Attracting a retaining new customers
6
Business Process Management (BPM)
6
Improving technical infrastructure
7
IT Management
7
Improving business processes
8
Networking, voice and data communications
8
Greater control and management of technology
9
Business intelligence (BI)
9
Expanding into new markets and geographies
10
Analytics
10
Table 6: Top 10 Business and Technology Trends for ICT in India15
15
TOP 10 TECHNOLOGY PRIORITIES
Gartner 2011
16 |
1.12. ICT - Emerging Technologies
The world economy is now characterized by sluggish growth in the West, a shift in power to the East, and value-driven customers and
rising risks everywhere. At the same time, the downturn has hastened the adoption of key technologies—cloud computing, business
intelligence, mobility and social media—that are transforming businesses and sparking a new wave of wealth creation, particularly
in the emerging world.
17 |
1.12.1. Cloud Computing
Cloud Computing is a concept newly developed in the IT
domain and is growing at a very fast pace across the world.
;OPZ [LJOUVSVN` HSSV^Z MVY T\JO TVYL LMÄJPLU[ JVTW\[PUN I`
centralizing storage, memory, processing and bandwidth. Under
the cloud computing concept, services can be availed under
three categories:
1. Software as a Service (SaaS)
2. Platform as a Service (PaaS)
3. Infrastructure as a Service (IaaS)
It is estimated that the cloud computing market in India stands
at USD 110 mn in 2010 with software-as-a-service (SaaS)
accounting for USD 50 mn of revenue. The total market is
expected to reach USD 1084 mn by 2015. As components of
the overall cloud market, software-as-a-service (SaaS) is likely
to reach a mark of USD650 mn by 2015, while platform-as-aservice (PaaS) and infrastructure-as-a-service (IaaS) markets’
cumulatively would touch USD 434 mn each by 2015.16
AVOV H <: IHZLK ÄYT OHZ ILLU WYV]PKPUN JSV\K JVTW\[PUN
ZLY]PJLZ [V 0UKPHU JVTWHUPLZ ZWLJPÄJHSS` PU *94 HUK )\ZPULZZ
suite services.
AVOVHWWSPJH[PVUZHYLMYLL[V\ZLH[[OLLU[Y`SL]LSHUKYLX\PYLHMLL
for more extensive or professional use.
In India following trends are observed:
.V]LYUTLU[THU\MHJ[\YPUNHUKLULYN`HYLMHZ[LZ[
growing verticals and have huge potential for cloud computing
)-:0HUK[LSLJVTHYLTVZ[TH[\YLK0;^PZLHUKOH]L
high propensity towards adoption of cloud
Growth Drivers
Cost of solution and brand of the technology provider are key
parameters used for evaluation during the decision making
process. The major demand drivers are:
7H`WLY\ZLTVKLSJSV\KZVS\[PVUZOLSWPUKLJYLHZPUN[OL
upfront cost for procuring IT
;OLYLPZUVJVZ[HZZVJPH[LK^P[O\WNYHKLZHUKTHPU[LUHUJL
7YV]PKLZHIL[[LYJHZLMVYPUMVYTH[PVUÅV^^P[OPU
the organization
<UPMVYTP[`VMWYVJLZZHJYVZZ[OLVYNHUPZH[PVUZ
Email, ERP and CRM are poised to be the top 3 workloads to
TV]L[V*SV\KI`6[OLYPKLU[PÄLKZLY]PJLZHYL"Z[VYHNL
security and collaboration suites.
Challenges
The major challenges that the cloud companies have to face in
India are around data security and reliability, lack of customization,
lack of training and support and poor market reach.
The total cloud market is less than 0.5% of the total domestic IT
spending which is expected to increase to around 5% of the total
domestic IT spending.17
:WLUKVU\ZPUNJSV\KI`PUMVYTH[PVU[LJOUVSVN`HUKIHJRVMÄJL
ÄYTZ[LSLJVZ)-:0IHURPUNÄUHUJPHSZLY]PJLZHUKPUZ\YHUJL
manufacturing and government organisations is set to increase
[VWLYJLU[V]LY[OLUL_[Ä]L`LHYZMYVTWLYJLU[PU17
16
CIOL News 2010
17
Adapted from Zinnov Study
| 18
1.12.2. Business Intelligence
India is the fastest growing Business Intelligence (BI) Platforms
market in Asia. The market for business intelligence (BI) software
in India is forecast to reach revenue of USD 65.4 mn in FY12, up
15.7 percent over 2010, according to Gartner, Inc. Organizations
HYL[\YUPUN[V)0HZH]P[HS[VVSMVYZTHY[LYTVYLHNPSLHUKLMÄJPLU[
business, and they increase the current usage scenario from just
an information delivery mechanism.
Currently the market for providing high-impact business solutions
is still very nascent and grossly under-exploited. In a booming
economy, business intelligence offers value over and above the
natural growth rate, and this is where a huge untapped market
lies in India.
Growth Drivers
ò(KVW[PVUVM)\ZPULZZ(UHS`[PJZZVS\[PVUI`:THSSHUKTLKP\T
enterprise (SME)
ò.YV^[Oof sectors like Telecom- BFSI, Security, Heavy
Engineering and technology-intensive manufacturing industries
and e-Governance
ò0TWSLTLU[H[PVUVMZVWOPZ[PJH[LKHUHS`[PJZMVY\UKLYZ[HUKPUN
customer churn and making credit risk assessments in BFSI
ò:[HUKHYKPaH[PVU9LN\SH[VY`*VTWSPHUJLHUKLUMVYJLTLU[VM
new laws like the Right to Information Act
ò*VTWHUPLZÔPJOOH]LHKVW[LKZVS\[PVUZSPRL,97Z\WWS`
chain management, or data warehouses, often face a
situation where they have a huge amount of data and
PUMVYTH[PVUI\[UVOLSWPUN[VVSVYJSLHYS`KLÄULKTHWÔPJO
can be put to use for making strategic decisions. This
growing segment would go towards BI to leverage data and
achieve further competitive advantage.
KEY PLAYERS
Microsoft, SAP, Oracle, SAS Institute and IBM are top players providing
)0 ZVS\[PVUZ ;OLYL HYL HSZV SVJHS ÄYTZ HSVUN ^P[O V[OLY MVYLPNU ÄYTZ
providing BI solutions in India.
Challenges
>OPSL[OLTHYRL[WVZLZHO\NLVWWVY[\UP[`[OLSHJRVMHKLÄUP[PVU
or agreement of what and how to measure/analyze the business
will continue to inhibit successful deployments, discouraging
organizations from further investing in BI. Additionally, right
pricing, awareness and customization of BI Solutions especially
for SMEs would be key challenges for solution providers.
EARLY ADOPTERS OF BI
UB Group
UB Group, India decided deployed Business Intelligence tools from Microsoft for cost reduction initiatives within the organization.
HDFC Bank
/+-*)HUROHZ\ZLK[OL)0ZVS\[PVUZMYVT9L]LSL\ZVMPÅL_[VYLK\JLJVZ[ZI`VW[PTPaPUNP[ZJOHUULSZ0[OHZHSZVOLSWLKPU
reduction of reaction time of the Bank to emerging market opportunities.
19 |
1.12.3. Mobility
Enterprise mobility18 is the biggest single trend across the tech
industry investment. The increasing importance of the space is
YLÅLJ[LKPUYVI\Z[THYRL[[YHJ[PVUWYLKPJ[PVUZMVY0UKPHHZ^LSS
According to Frost & Sullivan, the enterprise mobility market in
India was worth USD 77 mn FY0919 and is estimated to reach
USD 418 mn by FY16.
Enterprise mobility market in India is set to witness a major boom
in its adoption in the ensuing years. Rapid change in the business
models of organizations and demand to engage a better and
competent mobile workforce is primarily propelling adoption of
LU[LYWYPZLTVIPSP[`PU[OLTHYRL[;OLTVZ[ZPNUPÄJHU[I\ZPULZZ
application that is near ubiquitous in its mobility is email.
A PC Quest survey of over 70 IT decision makers from large Indian
companies noted that 46% of respondents had extended access
to email. Around 18% had also enabled access to CRM and ERP
on smartphones
Growth Drivers
-HJ[VYZ PUÅPJ[PUN NYV^[O PU [OL PUK\Z[Y` PUJS\KL HI\UKHU[
presence of handheld devices- smartphones, continual
YLWSHJLTLU[VMVMÄJL7*Z^P[OSHW[VWZ;HISL[ZYVSSV\[VMOPNO
speed connectivity (3G), low data access charges and declining
hardware prices.
Implementation of ICT-enabled mobility management systems in
2030 can offset emissions created by 12 million cars, travelling an
average of 18,000 km per annum which is equivalent to 16,500
million litres of diesel or 17,200 million litres of petrol saved.20
Adoption of enterprise mobility applications in the intra-enterprise
space is low but gaining momentum. India is still at a stage where
only a few sectors like retail and BFSI are using mobility apps for
conventional areas like sales force automation and transaction
management. Other early adopter market segments include
Pharma, Transportation and Logistics sectors.
Field force automation,
Mobile transaction management, Asset tracking and
management, bill payments
/ receipts, ticketing, MIS
Figure 8: Applications that are being ported to
mobility platforms
CRM, Remote Data
Collection and
management, Queue Buster
Solutions, Location based
services
Challenges
4HQVY JOHSSLUNLZ PKLU[PÄLK MVY [OL PUK\Z[Y` PUJS\KL ZLJ\YP[`
concerns, costs, Device compatibility, and limited ICT
infrastructures and digitization with Small Medium Enterprises in
0UKPHÔPJOPZHZPNUPÄJHU[JVUZ[P[\LU[VM[OLV]LYHSSTHYRL[
MOBILITY
PLATFORM
Creating localized enterprise solutions for businesses (that take
into account lower levels of digitization) as opposed to traditional
application would be the key to succeed in India.
Growth Path for Mobility
CHARACTERISTICS
CURRENT
FUTURE (2 TO 3 YEARS)
Build or buy
Predominantly custom-built
Predominantly packaged
Platform
7SH[MVYTZWLJPÄJ
Platform-independent
Device form factors
Smartphone, specialized devices, laptops
Smartphone, tablets, new form factors
Application footprint
Device-resident
Browser based
Usage Scenarios
Field and task workers
Field, task, management, business
travellers, knowledge workers
Business process scope
Sales and operations
All corporate functions
Table 7: Growth Path for mobile enterprise applications, 2011
18
19
20
Forrester
NASSCOM EMERGE Newsletter Feb 2011
CII-DESC Report on ICT’s Contribution to India’s National Action Plan on Climate Change, 2010
| 20
1.12.4. Social Media
Due to its direct reach to huge number of consumers, the social
media marketing has seen a tremendous growth in the recent
time with majority of companies adopting business models
around social media, using the platform to market events,
generate sales, introduce innovative concepts and even create
a new market for their brands online.
The estimated worldwide ad spends on social networks will be
in excess of USD 4 bn21 in 2011 and the same will continue to
grow. It is well established that these networks are capable of
rewarding media companies with new avenues of revenue.
TOP SECTORS WHICH ARE USING SOCIAL MEDIA IN
INDIA ARE:
- Job portals,
- Film Industry,
- Airlines,
- Telecom
- IT
- Retail (in the recent times)
With the emergence of e-commerce and e-governance, various
options of integrating them with the social media are also gaining
tremendous momentum.
A survey by Nielsen found that 70% of social media users in India
accessed a social networking site every day. It was also found
that 89% of 15-20 year old users accessed a social networking
site every day and 60% of them spend at least half an hour on it
daily. It was found that 37% of heavy social media users in India
(who use it multiple times a day) fall in the age group of 21-30
years.22
0UJYLHZLPUTVIPSLWLUL[YH[PVU!PUJS\ZPVUVM[OLZVJPHS
media apps
;VVSZ[VJHW[\YLHUKHUHSàL[OLZOPM[PU[OLZVJPHSTLKPH
marketing strategies
,TLYNLUJLVM[OL[OYLLRPUKZVMÄYTZPU[OLKVTHPUVM
ZVJPHSTLKPH!;LJOUVSVN`(UHS`[PJZ:[YH[LN`*VUZ\S[PUNÄYTZ
6\[ZV\YJPUNÄYTZ
As around the world top sites for social media in India are:
Facebook, Orkut, Twitter, Blogger, Youtube and Wikipedia. There
are also some Indian sites but with relatively small user base but
are integrated strongly among the target audiences.
Opportunity
Social Media trends in India
;OLI\`PUN[YLUK!VUSPULHZ^LSSHZVMÅPULPZVUHYPZL!HWSH[MVYT
for e-commerce
+L]LSVWTLU[VMZVJPHSTLKPH[VVSZMVYSVJH[PVUÔPJO^V\SK
SLHK[VSVJH[PVUZWLJPÄJKPZJV\U[ZHUKKLHSZ
;OLWLUL[YH[PVUVMZVJPHSNHTPUNPZVUYPZL)YHUKZHYL[HYNL[PUN
it for the potential customer base
21
22
Deloitte Report: Technology, Media & Telecommunications Predictions 2011
Federation of American Scientist (FAS) Report
21 |
The growth in the amount of time spent on social networks by
users will steadily see an increase in the coming years as the
KLTVNYHWOPJWYVÄSLVM0UKPHJOHUNLZ;OLH]LYHNL[PTLZWLU[
on such networks on a daily basis by an individual is now
calculated in hours as opposed to minutes as was done a few
years ago. A rough estimate of the increase in time spends on
social networks in 2010 over the corresponding year could be
anywhere in excess of 50%21. As fallout, constant and timely
innovation in products, systems, processes – all software driven
^PSSOLSWJYLH[LZPNUPÄJHU[UL^VWWVY[\UP[PLZ
1.13. Opportunites in Indian ICT Sector: Macro Outlook
As Indian consumers and corporations rapidly adopt mobile
phones, and Internet access and broadband connectivity
L_WHUK[OLYLPZSPRLS`[VILHZPNUPÄJHU[PUJYLHZLPUZWLUKVU0;
hardware, software and services. Finally, the biggest domestic
opportunity in most sectors (e.g., banking, insurance, retail,
telecom and healthcare) lies in tapping the opportunity to serve
the millions of underserved. India is likely to be the laboratory for
disruptive innovations to serve these underserved segments at a
WYPJLHUKWLYMVYTHUJLWYVÄSL[OH[Z\P[Z[OLZLJVUKP[PVUZ
From a service line perspective, Indian domestic market is still
heavily dominated by voice-based services. Most of the BPO
work is around contact centre type of work catering to customer
care and sales/marketing services. This would comprise almost
65-70 percent of the market. This is likely to expand into other
ZLY]PJL SPULZ Z\JO HZ /9 WYVJLZZ V\[ZV\YJPUN ÄUHUJL HUK
accounting, analytics and other niche services. BPO is in
The growth trend for the industry is expected to propel the Indian
IT-BPO exports market revenues to USD 175 billion by 2020, while
domestic revenues is expected to grow to USD 50 billion in the
same period
the emerging stages. As adoption increases, and it becomes
adolescent, the provider landscape would also change with
much larger, sophisticated and specialist providers playing in the
space. This would further drive the expansion of the service lines
within BPO.
0*;LUHISLKZVS\[PVUZPUOLHS[OJHYLLK\JH[PVUÄUHUJPHSZLY]PJLZ
and public services can drive socio-economic inclusion of 30
million citizens each year, faster, cheaper and more effectively
than traditional models hence it’s an important focus area for
Government.
INDUSTRY VERTICAL
PRESENT STATE
FUTURE POTENTIAL
Access
No Connectivity
Electromechanical Meters
Wireless
Smart meters (AMI)
Financial Services
Poor reach in rural areas
Financial Inclsuion
Smart Solutions
Energy
Incandescent lightings
Energy Shortage
LEDS
.YLLULULYN`LULYN`LMÄJPLUJ`
Healthcare
Accessibilty and cost of healthcare
Affordable devices/Telemedicine
Education
Limited Education
Digital/Virtual classrooms
Digitization
Analog to digital
Electronic sociuety/Unique ID/Digital TV, Radio
Security
Human dependence
Integrated surveillance systems
Others (like automobiles)
High cost, High emission cars
3V^JVZ[ALYVLTPZZPVUJHYZ
Table 8: Key Focus Areas for ICT
| 22
:,*;06500:\I:LJ[VY7YVÄSLZ
2.1 Healthcare
India’s healthcare industry is at USD 56 bn in 2010 accounting
for 5.5% of India’s GDP. It has been growing24 at a CAGR of
12 percent for the period between 2001 and 2009. Health Care
Industry is25 estimated to reach USD 75 bn by 2012 and USD
150 bn by 2017.
The primary constituents of Indian healthcare sector are:
4LKPJHSJHYLWYV]PKLYZ!WO`ZPJPHUZZWLJPHSPZ[JSPUPJZU\YZPUN
homes and hospitals
+PHNUVZ[PJZLY]PJLJLU[YLZHUKWH[OVSVN`SHIVYH[VYPLZ
4LKPJHSLX\PWTLU[THU\MHJ[\YLYZ
*VU[YHJ[YLZLHYJOVYNHUPaH[PVUZ*96»ZWOHYTHJL\[PJHS
manufacturers;
;OPYKWHY[`Z\WWVY[ZLY]PJLWYV]PKLYZJH[LYPUNSH\UKY`
9LN\SH[VY`6YNHUPaH[PVUZ
HEALTHCARE SECTOR STATUS
Pharmaceuticals
Currently growing at CAGR of 12%
and is expected to be worth USD 20
bn by 2015 with 70 % of the demand
is met by local manufacturing.
Medical Tourism
Market in nascent stage but is
developing very rapidly. Expected to
grow by 19% CAGR, expected to be
USD 3bn industry by 2013.
Medical Equipment and
Devices
Market worth USD 2.17 bn in 2008,
growing at a CAGR of 15% with 70%
of medical equipment for private
hospitals being imported.
Health Services
Health Services outsourcing has the
potential to grow to USD7.4 bn by
2012, from USD3.7 bn in 2006.
Health Insurance
With relaxation of FDI norms, the
private health insurance sector has
grown rapidly to become a USD 1 bn
industry in 07-08, expected to double
its revenues by 2012.
Table 9: Healthcare Sector Status
EnY Report 2008
Zinnov Study
25
“India Healthcare Trends 2008” Report by Technopak Advisors
26
Emerging Market Report: Health in India 2007 PricewaterhouseCoopers
27
Mckinsey Report-India Pharma 2015
23
24
23 |
HEALTHCARE IN INDIA23
- 0.7 mn doctors
- 1.1 mn hospital beds
- 15,000 hospitals
- 3,900 Nursing Colleges & 1.4 mn nurses
- 303 Medical Colleges ~ 35,000 new medical graduates
each year
- 143 Pharmacy Colleges and 350,000 Chemists
- 70% of hospitals are in tertiary care
The current per capita healthcare spend is low at around USD
49 per annum. Primary care accounts for around 60% of total
healthcare expenditure
Only 11% of the population has any form of health insurance
coverage. The market has been growing at a CAGR of 35% in last
Ä]L`LHYZHUKPZL_WLJ[LK[VNYV^TVYL[OHUPUMVY[OJVTPUN
years. 26
/VZWP[HS
7OHYTH
4LKPJHS0UZ\YHUJL
4LKPJHS,X\PWTLU[+L]PJLZ
+PHNUVZ[PJZ
Figure 9: Healthcare Market Breakup27
Based on the growth of the sector, healthcare industry’s
spending28 on IT requirements is expected to grow at CAGR
25% from USD 191 mn in 2010 to USD 1.5 bn annually by 2020.
In India, private healthcare accounts for nearly 80 per cent of
the country‘s total healthcare expenditure, although it is more
expensive than public healthcare services.
ICT in Healthcare
There exists a disparity between adoption of ICT in Public and
Private Healthcare Sector. While the private sector has begun to
implement IT solutions, the overall Indian healthcare spend on IT
is miniscule compared to core sectors.
Currently, usage of IT is restricted to hospitals with application
across their key functional areas like:
(KTPUPZ[YH[P]L!7H`YVSSWYVJLZZPUN0U]LU[VY`4HUHNLTLU[
*SPUPJHS!4HPU[HPUPUN7H[PLU[YLJVYKZ
-PUHUJLHUK9L]LU\L!)PSSPUN9L]LU\L4HUHNLTLU[
E-healthcare in India has been limited to medical transcription,
health awareness through portals, telemedicine, hospital and
laboratory management systems, and some forms of customer
service through internet for the medical insurance sector. There
is negligible basis of e-healthcare systems in the government
health services in India. This is seen as an opportunity and has
triggered off private sector investment, especially in the tier 1
(state capitals) and tier 2 (other large) cities.
The software products available in India include some proven
systems from international companies as well as a few locallydeveloped products. Large IT service providers including CDAC,
TCS, Wipro and Siemens Information’s Systems Ltd are the key
players. These companies offer end-to-end solutions such as
Hospital Information Systems, Picture Archival Communication
Systems and Telemedicine.
0; JHU OLSW KLSP]LY H SV[ VM LMÄJPLUJ` HUK YLTV]L \UULJLZZHY`
costs from public and private healthcare system in India. IT
Z`Z[LTZ JHU OLSW [V KYP]L \W LMÄJPLUJ` VM OLHS[OJHYL KLSP]LY`
PUMYHZ[Y\J[\YL THUHNPUN \UL]LU WH[PLU[ ÅV^Z MVY PUWH[PLU[
procedures, cost management and business intelligence.
Cloud-based services will offer an alternative to on-premises IT
infrastructures and transition to virtualized server infrastructures
drives shared-disk storage. Virtualization will also have a lot of
relevance in the years to come as it brings advantages such as
reduction of power, cost and space, which optimization of server
infrastructure add to the positives.
Report by Zinnov, 2011
FICCI-Ernst & Young (E&Y) Report
31
www.indiarnd.com/papers/ICTInnovations.pdf
28
29
Key Drivers of ICT in Healthcare
The ICT in healthcare delivery market in India is at a nascent
stage with high demand and growth potential. By 2020, the
Indian healthcare industry is estimated to be worth USD 275 bn30
^P[OZPNUPÄJHU[ZOHYLVM[OL0*;:VTLVM[OLRL`KYP]LYZMVY[OL
growth of healthcare sector and ICT in it are:
.YV^PUN7VW\SH[PVU!0UKPHULLKZH[SLHZ[L_[YHILKZ
to meet the demand for inpatient treatment by 2012
,_WHUKPUN4PKKSL*SHZZ!9PZLVM3PMLZ[`SL+PZLHZLZ
.YV^[OPUH^HYLULZZHIV\[/LHS[O0UZ\YHUJL
)VVTPUN7\ISPJ,_WLUKP[\YLHUK9PZPUN-+07YP]H[L
Investment
0UKPHULLKZH[SLHZ[TUTVYLX\HSPÄLKU\YZLZHUK
more doctors by 2012.31
0U]LZ[TLU[[V[OL[\ULVM<:+IUPZULLKLKI`
Government and international agencies will be able to gear up
only a part of the total investment that is required and the rest
of investment has to come from private sector. ICT innovation
can play big role by increasing the reach of healthcare and
strengthening preventive healthcare so that the infrastructure
requirement doesn’t arise at existing pace.
ICT SOLUTION-E-SWASTHYA
Piramal e-Swasthya focuses on improving healthcare access in rural
areas;70% of India’s population lives in rural areas
Model to develop No-Doctor Villages with tele-clinic facility and
treatment using e-diagnosis system
Reduced cost and improved quality of treatment for Rural Poor
Cloud computing is expected to comprise 40 per cent (or USD 600
mn) of the total annual healthcare IT spending by 2020. 29
IT giant Dell is providing cloud services to Max Healthcare in
India. Dell Services has converted the Information Technology
infrastructure of all eight Max Healthcare facilities into a private
MPLS (Multi-Protocol Label Switching) cloud running remotely
from Dell Services Data Centre in Noida. This has resulted in Max
Healthcare becoming one of the most technologically advanced
Healthcare chains in India.
HCL Infosystems offered cloud as a solution to integrate data
spread across various hospitals of the Fortis chain. Under the cloud
ZVS\[PVUWH[PLU[ZHYLWYV]PKLKH\UPX\LPKLU[PÄJH[PVUU\TILYÔPJO
enables Fortis hospitals across geographies to access patient data
and patients don’t need to carry their medical records as they
move from one Fortis hospital to another - provides a uniform and
pleasant patient experience. Cloud also enables Fortis to provide
telemedicine to remote locations.
30
| 24
There is a dynamic shift in the healthcare system in India with
therapies-to-service models, from niche-to-mass markets, from
globally integrated businesses to locally connected businesses.
This demands a paradigm shift in the way the organization
operates v/s their current business models and business
strategies. To focus on this shift, organizations are building new
competencies, integrating processes, outsourcing non-core
operations and moving towards virtualization.
Key opportunities for ICT in healthcare
/VZWP[HSPUMVYTH[PVU:`Z[LTZPUJS\KPUN,SLJ[YVUPJ4LKPJHS
Records for patient management, Claims Management,
Critical Procedures Administration, TPA Communication and
Data-management Systems.
*ÌLYZ\YNLY`
;LSLTLKPJPULPUJS\KPUN[LSLYHKPVSVN`
4LKPJHS[YHUZJYPW[PVUZLY]PJLZ
(WWSPJH[PVU:VM[^HYL:`Z[LTZ0U[LNYH[PVUZ\JOHZ[OVZLMVY
EMR/EHR, CPOE, PACS and DSS requirements
;LJOUVSVN`*VUZ\S[PUNMVY/VZWP[HSZPUJS\KPUNPKLU[PÄJH[PVU
adaptation, security assessment and maintenance of various
wireless technologies such as PSTN, RFID, WiFi and DECT
Key Challenges for ICT in Healthcare
3HJRVM\UKLYZ[HUKPUNVM[OLYVSL0*;JHUWSHÒV^[VTH_PTPaL
the existing IT investments and make future investment
7VVYOLHS[OJHYLPUMVYTH[PVU[LJOUVSVN`SHJRVMUH[PVUHS
standards for interoperability and connectivity
*VUULJ[PUNWLVWSL[V[OLYPNO[[LJOUVSVN`HUKPU[LNYH[PUN[OH[
[LJOUVSVN`PU[V[OLPY^VYRÅV^Z
:WLUKPUNPU[OLW\ISPJZLJ[VYPZSPTP[LK
,UZ\YPUNHMMVYKHISLOLHS[OJHYL[VTHZZLZÔPSLHKVW[PUN0*;
in healthcare
The key opportunities in the Healthcare value-chain can be summarized as:
LIFE SCIENCES
Healthcare Provider
LIFE SCIENCES
R&D
HIS Solutions
Rating & Underwriting
Billing & Collection
Manufacturing & SCM
EHR/NHIN/HIE Solutions
Claims Management
Sales & Manufacturing
Telemedicine Solutions
Corporate Governance
25 |
Core Policy Administration
Benefit Validation
Customer Enrollment
2.2. Animation & Gaming
The Indian Animation and Gaming industry stands at USD 0.7 bn
in 2010 having a CAGR of 25.6% p.a. for past 3 years. However
the industry size in India continues to be a miniscule 0.6% of
the global industry, which gives a large growth potential. It is
expected to reach a USD 1.84 bn32 by 2015.
The revenue generation in the animation and gaming industry
is from both the sources: domestic and outsourcing work with
outsourcing being the major contributor of revenue. The share of
the domestic animation market was 30% in 2009.
With the success of the Indian IT/ITES industry and the inherent
advantages of outsourcing it was expected that the India would
be a preferred outsourcing destination to production houses
and game developers across the world. However India’s share
of the outsourced work in the animation and gaming industry is
very low. Major Asian countries like Philippines, Taiwan, South
Korea and China are the preferred outsourcing destinations for
2D Animation, Canada and UK are the leaders in 3D Animation.
For gaming, China is the most preferred destination followed by
other Asian destinations.
It is estimated that the Indian animation and gaming industry is
expected to grow at 21.4% p.a. during 2010-2015, thus reaching
a market size of USD 1.84 bn by 2015
Market Structure
The four key segments of the Indian Animation and Gaming
industry are: Animation Entertainment, Entertainment VFX,
Custom Content Development and Gaming.
;PSS UV^ [OL V\[ZV\YJPUN ^VYR PU 0UKPH ^HZ JVUÄULK [V [OL
production and post-production activities, with Content
Development and pre-production activities being nascent, both
for the domestic and the outsourcing market. However, these
activities are seen to be emerging as Indian companies move up
the value chain.
70% of the revenues of the Indian Animation Industry are from the
outsourcing work done for the overseas clients
| 26
2.2.1. Animation
The animation market in India was at USD 0.5 bn in 2010 and
is expected to grow at a rate of around 20% p.a. to reach USD
1.27 bn by 201332. The animation industry in India has three key
segments:
*\Z[VT*VU[LU[+L]LSVWTLU[THQVYP[`THYRL[ZOHYLVM
(UPTH[PVU,U[LY[HPUTLU[
,U[LY[HPUTLU[=PZ\HS,MMLJ[Z=-?
The Animation Entertainment is further segmented under:
4V]PLZ
;LSL]PZPVU)YVHKJHZ[
;LSL]PZPVU(K]LY[PZPUN
+PYLJ[[V+=+
The entertainment animation market is highly fragmented in
India with top 10 players contributing only 20% of the industry
revenue33.
2L` KYP]LYZ L_WLJ[LK [V PUÅ\LUJL [OL
growth of Animation Industry in India
0UJYLHZLK6\[ZV\YJPUNI`6]LYZLHZ7SH`LYZ!;OLYLJLU[
economic slowdown has forced the organizations to increase
focus on cost reduction leading to greater outsourcing to Asian
countries,
.YLH[LYV\[ZV\YJPUNZOHYLMVY0UKPHUWSH`LYZ!0UKPHUJVTWHUPLZ
are being recognized for providing timely and quality work
,]VS\[PVUVM0UKPHUJVTWHUPLZ!0UKPHUJVTWHUPLZOH]LTV]LK
up the value chain by developing animation content
end-to-end.
*VTWHUPLZHKVW[PUN[OLº*V7YVK\J[PVU»TVKLS
(Revenue-Sharing) which opens high revenue opportunities
0UJYLHZPUN\ZHNLVM=PZ\HS,MMLJ[ZPU0UKPHU-PST0UK\Z[Y`
(Bollywood) is expected to give a boost to the industry
0UJYLHZPUNHKVW[PVUVML3LHYUPUNI`JVYWVYH[LZLJ[VYHUK
OPNOLYLK\JH[PVUPUZ[P[\[PVUZPU0UKPHPZHZPNUPÄJHU[VWWVY[\UP[`
32
33
PwC Report: India Entertainment and Media Outlook 2011
Italian Trade Commission Report 2010 on Indian Gaming and Animation Industry
27 |
TV broadcast segment has the largest market share among the
four ~50%
KEY PLAYERS IN CUSTOM CONTENT DEVELOPMENT:
- TATA Interactive Systems
- Educomp
- Everonn
- Learning Mate
- NIIT Ltd.
KEY PLAYERS IN ANIMATION ENTERTAINMENT AND
ANIMATION VFX ARE:
- DQ Entertainment
- UTV
- Crest Animation Studios
- Prime Focus
- Toonz Animation
- TATA Elxsi
- Pixion
- Prana
Opportunities in Animation segment:
,K\JH[PVUHSPUZ[P[\[LZ!:JOVVSZ2/PNOLY,K\JH[PVU
Institutes for their e-Learning requirements
*VYWVYH[LMVY[OLPYLTWSV`LL[YHPUPUNPU[LYUHSJVTT\UPJH[PVU
/ web-site designing services/marketing collateral
0UK\Z[YPLZZ\JOHZ(]PH[PVU+LMLUJLMVYZWLJPHS[YHPUPUN
requirements are customers of this segment
0UJYLHZLPU[OLVUSPULTHYRL[PUN
2.2.2. Gaming
The Indian Gaming market stood at USD 0.18 bn in 2010 and
is expected to register a growth rate of 24.9% p.a. to reach
USD 0.56 bn by 201532. This includes the revenues both from
the consumer market and the services market. The gaming
industry comprises four segments: Console, Mobile, PC and
Online. Console gaming has the highest share of 42% followed
by mobile with 28%33.
The Gaming consumer market in India comprises of PC Gaming,
Mobile gaming, Console Gaming and Online Gaming.
Gaming services market in India comprises:
6\[ZV\YJPUNKL]LSVWTLU[ZLY]PJLZ
(UJPSSHY`ZLY]PJLZZ\JOHZ]VPJLHUKLTHPS)76Z\WWVY[[V
MMOG (Massive Multiplayer Online Games) gamers worldwide,
porting, testing, etc.
Console Gaming:
The console gaming segment had
the highest market share of 42% in 200933. The console gaming
segment is dominated by the foreign players.
Mobile Gaming:
The mobile gaming market in India
has tremendous potential given that the mobile platform
has the highest reach in India. It is estimated that over 3 mn
users are engaged in mobile gaming every month. With falling
mobile prices, presence of almost all the international players,
introduction of 3G services, the mobile consumer base in India
is increasing at 60% per annum33 which is expected to push
demand for mobile games as well as its services manifolds.
PC Gaming: ;OL ZPNUPÄJHU[ YL]LU\L PU [OL 7* NHTPUN
KEY PLAYERS IN GAMING INDUSTRY:
- Indiagames
- Trine Entertainment
- Lakshya Digital
- Jamdat
- The Porting Lab
- Dhruva Interactive
- FX labs
9A.HTLZ
- Milestone eExpress, I-Energizer
the trend of Massive Multi-Player Online Role Playing Games
(MMORG) picking up. This is expected to lead to more
development, testing and porting work for Indian players.
.HTPUNLZWLJPHSS`TVIPSLNHTPUNPU0UKPHPZL_WLJ[LK[VNV
up on account of increasing mobile and internet penetration
coupled with increased affordability due to falling prices of
games.
Key Challenges in Animation and
Gaming Industry
The Indian Animation and Gaming industry holds a large potential.
However, it faces numerous challenges in realizing the potential:
/\NL[HSLU[JY\UJOILJH\ZLVMSPTP[LK[YHPUPUNPUZ[P[\[PVUZUVU
standardized curriculum and lower awareness among students
for animation and gaming
*\S[\YHS*VUZ[YHPU[Z!(UPTH[PVUHUKNHTPUNPU0UKPHHZHU
entertainment genre is restricted to kids.
3HJRVM.V]LYUTLU[Z\WWVY[PU[LYTZVMZ\IZPKPLZNYHU[Z
rebates or tax treaties: This limits the cost advantage that Indian
players offer compared to other outsourcing destinations
3HJRVMZ[YPUNLU[HU[PWPYHJ`SH^ZHUK079WYV[LJ[PVUPU0UKPH
consumer market is shared by the foreign players with low
margins.
Online Gaming: Currently, advertising forms the major
chunk (85%) of the revenues from online games market in India.
However, as penetration of the internet in India and consumption
of online games increases, this percentage is expected to change
favourably towards subscription.
Key growth drivers for the Indian
Gaming Industry
0UJYLHZLK6\[ZV\YJPUN!.HTPUNWSH`LYZV]LYZLHZHYL
increasingly focusing on cost reduction leading to greater
outsourcing.
0UJYLHZLKZOHYLMVY0UKPHU*VTWHUPLZ!^P[O[OLZRPSSZL[ZVM[OL
Indian companies, outsourcing share is expected to go up.
0UJYLHZLKKLTHUKMVY.HTPUN.SVIHS+VTLZ[PJ!.SVIHSS`
gaming is expected to continue its growth especially with
| 28
2.3. Education
Education Sector is by far the largest capitalized space in India
with USD 30 bn of government spend (3.7% of GDP), and a
Network of ~1 million schools and 18,000 higher education
PUZ[P[\[LZ @L[ [OL W\ISPJ LK\JH[PVU Z`Z[LT PZ ºPUZ\MÄJPLU[» HUK
ºPULMÄJPLU[»SLHKPUN[VZWLUKZVM<:+IUVUWYP]H[LLK\JH[PVU
40% enrolled population attends 75000 private schools (7% of
total schools).
India’s current spend on education is at 5% of average household
(HH) income and is growing at a CAGR of 8.6% versus
consumption growth of 3.2% over 1995-2005. Due to rise in
paying capacity and higher aspiration for education, spends on
Private education is expected to increase to USD 80 bn by 2012.
Indians spend over USD 13 bn annually on higher education in
the overseas markets.
The country’s literacy rate has improved from 64.8% during 2001
to 74% as per the Census 2011.
Indian Education Sector (IES) - Structure
(VALUES IN MN USD)
REVENUES34 (2008)
% SHARE OF TOTAL
REVENUES (2012 E)
CAGR (%)
Formal IES
40000
80
65250
13
K12 (Kindergarten to
12th Standard)
20000
40
33779
14
Higher Education
20000
40
31470
12
Non-formal IES
10110
20
19608
18
Preschool
300
0.60
1026
36
Multimedia in private
schools
70
0.14
459
60
ICT in govt schools
90
0.18
752
70
Coaching classes
6400
12.77
11194
15
Books
1500
2.99
3662
25
Table 10: Indian Education Sector Structure34
ICT in Education
ICT in education sector consists of the implementation of various
IT tools and applications which help facilitate imparting of better
HUKLMÄJPLU[LK\JH[PVUHSZLY]PJLZ;OLTHYRL[ZPaLPZLZ[PTH[LK
to be valued at USD 0.53 bn in 2010.
0*; HKVW[PVU PU ,K\JH[PVU PZ L_WLJ[LK [V NYV^ ZPNUPÄJHU[S`
due to Government’s initiatives on PPPs and private sector
investment in various high growth categories such as Multimedia
and ICT applications in Schools despite the slow growth of IT/
ITES training segment.
34
IDFC-SSKI India Research 2009
29 |
KEY ICT PLAYERS IN EDUCATION SECTOR ARE:
Educomp
Everonn
NIIT
Compucomm
Public Providers
Capacity Building
School
Teacher
Content Development
Curriculum
Framework
Classroom
Student
Monitoring and Evaluation
Institutional Mechanism
POLICY PLUS
+L[HPSLK0TWSLTLU[H[PVU7SHUZ
and Operational Strategies to
support Policy Statements
-PUHUJPHSHSSVJH[PVUZ[VYLHSPaL
policy objectives
0UZ[P[\[PVUHS*HWHJP[`
& Political and
Administrative Will
*VTT\UP[`KLTHUKMVY0*;
Private Providers
Figure 10: ICT for Education Ecosystem
Non formal education opportunity
6YNHUPaLKWYLZJOVVSTHYRL[<:+TU"*(.9[PSS,
4\S[PTLKPHMVYWYP]H[LZJOVVSZ<:+Te*(.9[PSS,VMMLYZ]HS\LJYLH[PVUWV[LU[PHSZPUJLP[PZOPNOS`
under penetrated and a technology-driven model.
SEGMENT34
Multimedia in private
schools
Providing technology as
an aid to chalk & talk in
K12 under the BOOT
model
REVENUES
(MN USD)
2008
2012 E
70
500
CAGR 60%
GROWTH DRIVERS
KEY RISKS
5% of private unaided schools
have been covered – a highly
unpenetrated market
Large upfront
investment
Market potential in excess of
USD1.5 bn
Duplication of
content
Existing model set to witness high
NYV^[OK\L[VPUÄUP[LYL[\YUVU
investment for schools
KEY PLAYERS
Educomp –Smart
Class
Everonn – Vitels
NIIT – Eguru
ILFS – Kyan
Plans to foray –
Navneet Ebook
An annuity model
Table 11: Drivers, Risk and Key Players in ICT in non-formal Education Sector
ICT in Government Schools Opportunity
*\YYLU[S`<:+ TUTHYRL[^P[OWLUL[YH[PVUVMSLZZ[OHUPZL_WLJ[LK[VKV\ISLPUZPaLI`
The Government is increasingly opting for Public Private Partnerships (PPP).
| 30
SEGMENT34
ICT in public schools
REVENUES
(MN USD)
2008
2012 E
90
750
GROWTH DRIVERS
KEY RISKS
Underpenetrated market with 9% of Large upfront
the government schools covered
investment
PPP in education
Government to increase spends
(allocation for SSA increased 4X in
11th Plan)
L1 bidding leading to
commoditization and
low margins
Providing IT
infrastructure & training
29000 schools up for bidding in
FY09
Long receivable
cycles
Funded bycentre/
states under Sarva
Shiksha Abhiyan (SSA)
KEY PLAYERS
Educompp
Everonn
NIIT
Compucomm
Core Projects
Various Regional
Players
Table 12: ICT in Government Schools Opportunity
Vocational Training Market
*\YYLU[S`H[<:+IU^P[OH*(.9VMHJJV\U[ZMVYVM[OLUVUMVYTHS0,:ZLNTLU[+VTLZ[PJ0;0;,:;YHPUPUNPZVUL
third of the Vocational training market.
SEGMENT34
Vocational Training
Caters to Age group
>14 years
REVENUES
(MN USD)
2008
2012 E
1500
3660
CAGR 25%
(USD 550 mn for
domestic IT training;
USD 1 bn for vocational
training such as retail,
avaiation, English and
FMT)
GROWTH DRIVERS
KEY RISKS
KEY PLAYERS
New opportunities apart from IT –
retail, BFSI, English and Life skills
trainings
Slowdown in IT and
other services sector
Employers demand productivity
from day one.
Corporate training
revenues have low
margins; revenue
lumpy in nature
NIIT
Aptech – IT and
Aviation (Avalon)
Jetking
CMS
ICA
K10
Russell English
Training
-YHURÄUU
India’s demographic dividend
– surplus of 47mn working age
population while shortage of 56mn
for ROW by 2020E
Table 13: Vocational Training Market Segment
e-Learning35
With the advances in digital electronics, e-learning has
become an effective tool to enrich the courseware content
with multimedia features like audio, video, graphics and
3D-animation.
reach to more and more learners and spread e-Learning from
teaching of IT related subjects to other subjects in the school
curricula.
MICROSOFT – ‘PROJECT SHIKSHA’
,3LHYUPUNPZVULVM[OL[OY\Z[HYLHZPKLU[PÄLKI`[OL/\THU
9LZV\YJL+L]LSVWTLU[+LWHY[TLU[VM[OL<UPVU.V]LYUTLU[
The thrust of the e-Learning programme is to effectively
integrate e-Learning methodology and approach with the
JVU]LU[PVUHS JSHZZYVVT Z`Z[LT [V TH_PTPaL [OL ILULÄ[Z
ÅV^PUNMYVT[OL[YHKP[PVUHSLK\JH[PVUZ`Z[LTPUJYLHZLP[Z
35
www.mit.gov.in/content/e-learning
31 |
Instils ICT skills required to enhance the teaching learning process
INTEL TECH PROGRAM
Provides in-service and pre-service teacher training to help
teachers integrate technology in the class room
Major ICT Initiatives in Education
in India36
1. Teacher Training
Teacher training activities to date focus mainly on computer
literacy instead of enabling teachers to integrate ICT in their
day-to-day teaching activities and master the use of ICT as an
effective tool to improve teaching and learning.
2. ICT Infrastructure in Schools
ICT as a subject in the curriculum and the corresponding
establishment of computer laboratories is a key focus in the
policy framework in India. As a result most of the initiatives
taken by the government involve providing computer
laboratories to schools particularly secondary and higher
secondary schools. Many private and non government
organizations, either independently or in collaboration with the
government, have also been providing computer to schools.
Apart from computers, some other ICT facilities such as
satellite broadcasting, video-conferencing and multi-media
storage technology (CD-ROMS & DVDs) can be seen in
schools.
3. ICT for Non-Formal Education (NFE)
Non Formal Education (NFE) has been encouraged to provide
mass education to the large majority who were outside the
ambit of the formal school system. ICT could be a useful tool
to reach out to such people.
4. Open & Distance Learning (ODL)
0U0UKPH[OLILULÄ[ZVMHU6+3Z`Z[LTOH]LILLUL_[LUKLKH[
the school level. The imperative of developing an ODL system
more or less came from recognition of the need to promote
mass education. Historically, the ODL institutes were using
traditional print supplemented with video and audio based
programmes. However, more recently with the development
of innovative and modern technology, these institutes have
begun integrating video conferencing and other multimedia
tools.
Government Initiatives
;OL WVSPJ` MYHTL^VYR ÄUHUJPHS Z\WWVY[ HUK N\PKLSPULZ [V
ensure a national standard of education are provided by the
Government of India through the Ministry of Human Resource
Development (MHRD). The implementation of the policies and
guidelines is primarily done at the state level.
Some of the key initiatives to use ICT in Education are as
follows:
.V]LYUTLU[»Z::(,K\JH[PVUMVY(SSPUP[PH[P]LSH\UJOLKPU
LUJV\YHNLZZ[H[LZ[V\ZL[OL0*;HUKZH[LSSP[L,+<:(;
(Education Satellite) to provide distance education.
;OL0*;H[:JOVVSZ^HZSH\UJOLKPU^P[OH]PL^[V
36
provide opportunities to students to develop their ICT skills
as well as use ICTs to aid the teaching learning process.
<UKLY[OPZZJOLTLZ\WWVY[PZWYV]PKLKMVYWYVJ\YLTLU[VM
computers, peripherals, software, connectivity, and so on.
;OL5H[PVUHS4PZZPVUVU,K\JH[PVU[OYV\NO0*;SH\UJOLK
in 2009, aims to leverage ICTs for enhancing the teaching
learning experience of learners. The Mission focuses on
content generation and providing connectivity.
4VYLYLJLU[PUP[PH[P]LZPUJS\KL\WNYHKLZ[V[OL,K\JH[PVU
and Research Network (ERNET) connecting various
universities and regional engineering colleges (RECs),
SV^LYPUNJ\Z[VTZK\[PLZVU0;WYVK\J[ZHSSV^PUN
foreign investment and passing the Information Technology
Act, 2000.
Key Drivers of ICT in Education
The experience with the open education system so far has
convinced policy-makers in the government that use of ICT
in education has great potential to supplement the formal
education system and to provide quality education to large
segments of population through cost-effective, open, and
ÅL_PISL THUULY 6WLU LK\JH[PVU Z`Z[LTZ HYL PUP[PH[LK PU
TVZ[VM[OLZ[H[LZ"OV^L]LY[OLPYKL]LSVWTLU[PZH[KPMMLYLU[
levels. Encouraging Government initiatives to build capacity
and ensure higher rural education penetration, Private Sector
Investment through PPPs, high requirement of physical
infrastructure for Education to keep pace with requirement
due to population growth and improved aspirations, and need
for better and high quality educational services are boosting
the ICT usage in education.
INDIRA GANDHI NATIONAL OPEN UNIVERSITY
Provides a two year diploma course in primary education by using
print material supplemented with radio and television program
SARVA SHIKSHA ABHIYAAN (SSA)
SSA in collaboration with IL&FS Education and Technology service
limited is in the process of establishing computer labs in 200
schools in Bihar
EduSat – Education Satellite
EduSat facilities are being used by schools across the nation to
provide high speed internet connectivity
EduComp Solutions Ltd.
EduComp partnered with state government to provide
infrastructural support and content to over 14000 government
schools
Survey of ICTs for education in India & South Asia, 2010 infoDev & PwC
| 32
Key Challenges
India faces a number of unresolved issues and challenges for
the adoption of ICT in the education sector:
3V^3P[LYHJ`3L]LS!3P[LYHJ`SL]LSZPU0UKPHHYLSV^L]LU
those deemed to be literate are perhaps not competent
enough to receive IT education.
;LJOUVWOVIPH!;VPUJYLHZLKPNP[HSSP[LYHJ`SL]LSZHTVUN
students and teachers, steps will need to be taken to
overcome their technophobia. Teachers are typically wary
of technology.
4VUP[VYPUNHUK,]HS\H[PVU!;OLWLUL[YH[PVUVMOHYK^HYL
PZMHPYSÒPNOPUTVZ[ZJOVVSZ"OV^L]LY[OLSL]LSVM\ZHNL
is debatable since there is no auditing or monitoring to see
whether students are actually using these computers.
.\PKLSPULZMVY7YVJ\YPUN*VU[LU[!;OLYLHYLHSZVUVJSLHY
guidelines available for procuring quality content. Identifying
quality content is a common constraint for schools looking
to use ICT-enabled teaching learning practices.
33 |
0UZ[P[\[PVUHSMYHNTLU[H[PVU!*\YYPJ\S\TKLJPZPVUZ
infrastructure decisions, content decisions, policy making,
and policy implementation are all taken up by different bodies
at different levels.
7VVY0UMYHZ[Y\J[\YL!9\YHS0UKPHMHJLZV[OLYPUMYHZ[Y\J[\YL
PZZ\LZSPRLSL]LSVMPU[LYUL[WLUL[YH[PVUHUKSV^LSLJ[YPÄJH[PVU
6[OLYJVUZ[YHPU[ZMHJLKI`0UKPHPUJS\KLSPUN\PZ[PJKP]LYZP[`
and income disparity.
2.4. Manufacturing
The manufacturing sector is estimated at market capitalisation of
USD 520 bn by 2014-1537.
Over last two decades, a large number of MNCs across different
verticals have set up their manufacturing units in India. The major
reasons are the availability of educated and cheap workforce as
well as to tap the large Indian market. These MNCs bring their
own set of ICT solutions, for manufacturing, with them which is
at par with the global standards.
The manufacturing sector of India comprises approximately
53 lakh units. These units are spread across various verticals
with highest contribution from Food and Beverages followed by
Textile, Fabricated Metal Products, etc.
However the majority of players (99% of manufacturing
units) in India qualify under the Micro, Small and Medium
,U[LYWYPZL4:4,JH[LNVY`HUK[OLZLÄYTZSHJRL]LU[OL
basic ICT services.
The IT spending in the manufacturing sector as a percentage of
revenue in FY09 and FY10 are 0.6% and 0.8% respectively38.
To remain competitive in the global scenario it has become
PTWLYH[P]LMVY[OLZLÄYTZ[VHKVW[0*;MVY[OLPYZ`Z[LT
Status of Technology
The contribution of the manufacturing sector in the GDP of
0UKPHOHZILLUJVUZ[HU[H[HYV\UKV]LY[OLWHZ[KLJHKL
India’s manufacturing strength lies within the micro, small and
medium enterprises with close to 99 per cent of the total units
falling under the same
Opportunities
MSMEs in India have very different business practices and are
ÄUKPUNP[]LY`KPMÄJ\S[[VJVTWL[LPU[OLNSVIHSZJLUHYPV(SZV[OL
MSMEs in India are new to the idea of keeping a budget for ICT
and they avail the services when the requirement arises. There
is an increasing trend of MSMEs adopting the ICT solutions but
a lot of hesitation has been observed due to lack of success
stories.
Opportunities exist in the MSME domain for ICT companies if
they can address the issues of:
4HWWPUN[OLI\ZPULZZWYVJLZZLZ^P[O^VYRÅV^ZMVYJ\Z[VTPZPUN
software applications to smoothen the adoption system
:`Z[LTZMVYZ[YLHTSPUPUN[OLÄUHUJLZ
)L[[LYPU]LU[VY`JVU[YVS
0KLU[PM`PUN[OLYLX\PYLTLU[VM[OLPUK\Z[Y`HUKWYV]PKPUNÄYT
ZWLJPÄJ0*;ZVS\[PVUZ
:PTWSPM`PUNJVTWSL_HKVW[PVUZ`Z[LT
7YV]PKPUN[OL[YHPUPUNHUKHM[LYZHSLZZLY]PJLZHM[LYPTWSLTLU[PUN
the solutions
There is awareness about basic ICT solutions (communication,
JVSSHIVYH[PVU ÄUHUJL HJJV\U[PUN HUK WH`YVSS /9
management). ICT solutions for core manufacturing processes
ÄUKH^HYLULZZTVZ[S`HTVUNTLKP\TSL]LSTHU\MHJ[\YPUNÄYTZ
Adoption of ERP is at a very nascent stage with only 7 per cent
adoption among the manufacturing units.
One of the major barriers in its adoption is the lack of reliable
and trustworthy system integrators, especially in smaller cities.
Core ICT solutions for manufacturing such as ERP and DMSS
HYL Z[Y\NNSPUN [V THRL [OLPY ^H` HTVUN THU\MHJ[\YPUN ÄYTZ
3V^LY\ZHNLSL]LSOHZILLUVIZLY]LKPUÄYTZ[OH[KVUV[PU]LZ[
in training at the time of ICT deployment.
It is observed that the verticals with comparatively high
technological maturity seem to be ahead of the others in the
0*;HKVW[PVU"L_HTWSLZHYLH\[VJVTWVULU[ZJOLTPJHSZHUK
electrical machinery. For instance in the auto industry, the
automobile original equipments manufacturers in the country
use advanced technology and are large in size and they have
high level of ICT adoption. This has resulted in a top-down
push towards Tier I suppliers who are auto component
manufacturers.
Demand Drivers
The demand drivers in the sectors are requirement of the
manufacturer for better business process systems for
PTWYV]LTLU[PU[OLLMÄJPLUJ`;OLMVSSV^PUNHYL[OLRLÌLULÄ[Z
manufacturers seek and drive the manufacturer for adopting ICT:
7YVJLZZÅV^HUKIL[[LYPU]LU[VY`JVU[YVS
,_[LYUHSMHJ[VYZZ\JOHZJSPLU[YLX\PYLTLU[ZJVTWSPHUJLHUK
to tackle competition in the market
-HZ[LYJVTT\UPJH[PVUÔPJOSLHKZ[VPUMVYTLKKLJPZPVUTHRPUN
-PUHUJLHUKHJJV\U[PUNM\UJ[PVUZOLSWÄYTZJVTWS`^P[O[OL
accounting standards
)\ZPULZZKL]LSVWTLU[HJ[P]P[PLZ
;OLPKLU[PÄLK0*;ZVS\[PVUZMVY[OLTHU\MHJ[\YPUNZLJ[VYHYL
\UKLY[OLKVTHPUZVM!JVSSHIVYH[PVUJVTT\UPJH[PVUÄUHUJPUN
& accounting, payroll & HR management, procurement, order
processing, product lifecycle, quality management, centralised
system (ERP), decision support system
37
38
Study by Confederation of Indian Industry and the Boston Consulting Group
| 34
Major Challenges
The challenges faced by the technology service provider can be
IYVHKS`JSHZZPÄLK\UKLYOHYK^HYLZVM[^HYLHUKZLY]PJLZ
;OLZVM[^HYLJOHSSLUNLPZ[VHKKYLZZ[OLPTWSLTLU[H[PVU
piracy and local language issue
/HYK^HYLZLJ[PVUPZWSHN\LK^P[OOPNOJVZ[HZZVJPH[LK^P[O
infrastructure and taxes
;OLZLY]PJLZLJ[PVUJOHSSLUNLSPLZPUWYV]PKPUNX\HSPÄLKHUK
trained service providers for various services such as system
implementation, support and maintenance
At the customer level, awareness is the biggest challenge that
hinders the growth of ICT adoption among Indian manufacturing
ÄYTZ(Z[OL0*;ZVS\[PVUZHYLJSHZZPÄLK\UKLYIHZPJHUK
core ICT solutions, the basic ICT services have high awareness
among the MSMEs which is attributed to its free and low cost
availability. Core ICT solutions are able to maintain awareness
only among medium sized manufacturers. Other challenges
H[ [OL ÄYT SL]LS HYL! (IZLUJL VM WYVWLY ZVS\[PVUZ (IZLUJL VM
experts, Complex adoption system and Budgets.
35 |
2.5. Telecom
India is the world’s second-largest telecom market. The total
subscriber base (including landline and wireless) reached 787.28
million10 in December 2010. It is an important contributor to
India’s GDP with a total market worth USD 33 bn; and has
grown at a CAGR of 10.53% (by revenue) and 34.66% (by no
of subscribers). It has been one of the high growth areas over
the last decade and is expected to grow at a CAGR of 10.1% by
subscribers (2010 to 2015)39.
Teledensity in Wireless and Landline
Teledensity %
;V[HS
>PYLSLZZ
3HUKSPUL
-@
-@
-@
-@
-@
-@
-@
-@
-@
-@
-@
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Figure 11: Teledensity in Wireless and Landline
Urban subscribers account for more than 65% of the total
subscribers. About 24% (by revenues) of the market is occupied
by the public sector.
The easy access to mobile services is the outcome of positive
regulatory changes, intense competition among multiple
VWLYH[VYZ SV^WYPJLK OHUKZL[Z SV^ [HYPMMZ HUK ZPNUPÄJHU[
investments in telecom infrastructure and networks.
Wireless Mobile Market
The growth of the Telecom Industry has been largely driven by
the growth seen in the wireless telecom sector. This segment has
seen grown at CAGR of 77.5% from 2000 to 2010, it is expected
to grow at an overall CAGR of 10.1% from 2011 to 2020 with
rural and low income groups being the major drivers.
The sector is dominated largely by private players. On the
technology front, GSM is more popular than CDMA in India.
.VPUN MVY^HYK ÄUHUJPHS WYLZZ\YLZ HUK ZOYPURPUN WYVÄ[ THYNPUZ
due to competition and low Average Revenue per User (ARPU)
HYPZPUNV\[VMZPNUPÄJHU[PUHJ[P]LHUKT\S[PWSL\ZLYZPZL_WLJ[LK
to lead to consolidation in the sector.
39
<YIHU
9\YHS
Figure 12: Telecom Urban – Rural Divide
Indian Wireless Market 39
Second largest market after China
Total subscriber of 584.3 mn in FY10
;LSLKLUZP[`VMPU:LW[
EnY Report – Enabling next wave of Telecom growth in India, 2011
| 36
Wireless Subscriber’s Forecast
Wireless Technology GSM vs. CDMA
0UTPSSPVUZ
-
-
-
-
-
-
.:4
Figure 13: Wireless Subscribers Forecast and GSM – CDMA Divide
*+4(
+H[HHZVM:LW[
$TU
Wireline
The wireline market has grown at a meagre CAGR of 3.3% from
2000 to 2010. It is expected to grow at CAGR of 4%, to reach
29 million by 2015.
The wireline market is dominated by the government controlled
Public sector organizations who also offer wireless services. A
ML^WYP]H[LWSH`LYZOH]LHSZV]LU[\YLKPU[V[OLÄ_LKSPULTHYRL[
offering services like Value Added Services such as high-speed
internet access, video on demand and videoconferencing.
While the landline market has not grown as extensively compared
to the growth in wireless infrastructure, there is opportunity for
growth in data services. Emergence of new technologies such as
ÄILY[V[OLOVTLPZL_WLJ[LK[VKYP]L[OLNYV^[OVM[OL^PYLSPUL
market in India.
WIRELINE MARKET39
Wireline Market39
Subscriber of 37 mn in FY10
;LSLKLUZP[`VMPU:LW[
Z\IZJYPILYZPU<YIHUHYLHZ
(ZVM:LW[OLYL^LYLTUW\ISPJJHSSVMÄJLZHUK
village public telephones
Internet and Broadband
The market for Internet and Broadband in India has grown at a
CAGR of 24% and 117% to reach 16 mn and 9 mn, respectively
in 2010. In terms of revenue the total market is worth USD 1.9 bn
in FY201040. The growth is primarily due to increased presence
of the private players, emergence of new technologies and upgradation of telecom infrastructure.
0U[LYUL[
)YVHKIHUK
Figure 14: Internet and
Broadband Subscribers
39
40
-@
-@
-@
-@
EnY Report – Enabling next wave of Telecom growth in India, 2011
www.trai.gov.in/reports_list_year.asp
37 |
-@
-@
:LW
The growth of broadband is expected to increase with uptake of 3G and BWA services and is expected to reach 150 million
by 2020.
5VVMOV\ZLOVSKZPUTPSSPVUZ
5VVMIYVHKIHUKJVUULJ[PVUZPUTPSSPVUZ
Figure 15: Broadband subscribers Forecast
Value Added Services (VAS)
Broadband penetration in India is currently concentrated in urban
areas driven by affordability and availability. Expansion of internet
and broadband services opens up host of opportunities for
education, governance, entrepreneurship and services sector.
The opportunities hold a much larger promise for India’s large
low-income population and a growing economy.
TYPE OF VAS
MARKET SHARE
The VAS market in India has been growing at a CAGR of over
50% during 2006–10. Following is the structure of the VAS
market:
Share of m-commerce is expected to grow with the growth of
e-commerce
EXAMPLES
Entertainment VAS
57%
SMS Jokes, Callertunes, Music Downloads
Information VAS
39%
News, Weather reports, Stock updates
m-commerce
4%
Mobile Ticketing, Mobile as debit cards, money transfer etc
Table 14: Value Added Services (VAS) Market Share
Increasing subscriber base, competition forcing operators to
differentiate, pressure on earnings through basic telephony
services and the rollout of 3G services is expected to drive the
mobile VAS market in the future, creating opportunities for both
telecom operators and companies engaged in VAS.
KEY PLAYERS IN VAS SEGMENT
The key players in this sector are: all mobile operators, Onmobile,
Webaroo, Bharti Telesoft etc.
Market Size of VAS
0U<:+IPSSPVUZ
Figure 16: VAS Market Size
Source: EnY Report - Enabling next wave of Telecom
growth in India, 2011
-
| 38
Enterprise Data
NLD (National Long Distance) and ILD (International Long
Distance) are two segments of the enterprise data market in
India. NLD & ILD’s Market revenue in FY10 was USD 3.64 bn
& USD 3.91 bn respectively. Overall the enterprise data market
in India is growing at a CAGR of 10% and is expected to touch
the USD 10 bn mark in the next 5 years. The growing demand
for connectivity is coming primarily from the IT and IT-enabled
ZLY]PJLZ ZLJ[VY 0;L: [OL ÄUHUJPHS ZLY]PJLZ ZLJ[VY HUK [OL
government. Most large global players have set up operations in
India to cater to the connectivity needs of their customers.
Voice over Internet Protocol (VoIP) is considered a key enterprise
application for lowering operating costs. It has spurred the
demand for IP-based virtual private network (IP-VPN) services in
India. The other services relevant to this segment are international
private leased circuits, internet connectivity; multiprotocol label
switching (MPLS) based IP-VPN services, and national and
international data connectivity.
Telecom Infrastructure
Today, there are an estimated 425,455 telecom towers in India.
;OL[LSLJVTPUMYHZ[Y\J[\YLPUK\Z[Y`MHJLZSV^WYVÄ[HIPSP[`HUKOHZ
a pre-tax margin of 7%–8%. Overall, the industry has invested
about USD 22 bn and is expected to invest another USD 11 bn
over the next two years.
Other Key Opportunities:
The wireless telecom and internet & broadband markets would
continue to grow in double digits for some years to come, and
thus present very good opportunity overall. Some of the key
areas where markets are expected to be very lucrative:
3-G Services: It is expected to account for 20% of market
share (more than USD 10 bn by some estimates) by 2020.
)>((Broadband Wireless Access): It is expected that
this technology would have transformational change on the
broadband penetration in India. The whole ecosystem still
needs to develop though.
4HK]LY[PZPUN: This market is expected to take off once the
3G deployments are complete with videos adding another
avenue of advertising.
4JVTTLYJL!In India a large chunk of population is unbanked
HUKTJVTTLYJL^PSSWSH`HTHQVYYVSLPUÄUHUJPHSPUJS\ZPVU
4OLHS[O! M-health applications enable real-time collection of
health data, delivery of health care information to practitioners,
researchers and patients and real-time monitoring of patients.
0[OHZZPNUPÄJHU[WV[LU[PHS[V[YHUZMVYT[OLOLHS[OJHYLKLSP]LY`
in India
39 |
KEY PLAYERS IN ENTEPRISE DATA SERVICES
The key players in this sector are Tulip, Tata communications,
Reliance Communications etc
KEY PLAYERS IN TELECOM INFRASTRUCTURE
The key players in this sector are Bharti Infratel, Indus Towers,
Reliance Infratel, BSNL, MTNL etc
Key Challenges
0UJYLHZLK*VTWL[P[PVUHUK+PTPUPZOPUN
Revenue Streams:
With new players entering the market, telecommunications
companies are competing strongly and selling products and
services beyond their core offerings and at much cheaper
prices. This is resulting in less revenue from traditional sources,
TVYLWYLZZ\YLVUWYVÄ[THYNPUZHUKHU\YNLUJ`[VÄUKUL^
revenue streams by investing in new technologies such as VoIP
VYÄ_LKTVIPSLJVU]LYNLUJL
/PNOJHWP[HSPU]LZ[TLU[Z^LSSLZ[HISPZOLKWSH`LYZÔV
have a nationwide network, license fee, continuously evolving
technology and lowest tariffs in the world are key challenges
for new players
:[HNUH[PVUVMNYV^[OPU[OLSHUKSPULTHYRL[PZHJOHSSLUNLMVY
Industry for holistic growth
0UHKLX\H[LPUMYHZ[Y\J[\YLHIZLUJLVMSV^JVZ[KL]PJLZ
inadequate content and applications in regional languages
are some of the challenges for broadband penetration, a key
parameter which is accepted as a measure of a country’s ability
to compete as an economic power.
;OLH]HPSHIPSP[`VMZWLJ[Y\TMVYJVTTLYJPHSZLY]PJLZPU0UKPH
is below the required levels. In the absence of a long-term plan
to meet future requirements, the advent of new technologies is
L_WLJ[LK[VJYLH[LJVUÅPJ[ZMVYZWLJ[Y\T
;OLPUK\Z[Y`Z\MMLYZMYVTHO\NLYLN\SH[VY`YPZRK\L[V
uncertainty in licensing and spectrum policy, lack of domestic
THU\MHJ[\YPUNHUKSVZ[VWWVY[\UP[PLZPUM\SÄSSPUN[OL\UP]LYZHS
service obligation.
7VVYNV]LYUHUJLVM[LUSLHKPUN[VUVU[YHUZWHYLU[HUK
controversial implementation of policies (2G Scam)
Key Drivers
*\YYLU[S`TVYL[OHUVMIPSSPVU0UKPHUYLZPKLPUY\YHS
areas where the teledensity is 28.4 % (as of Sept, 2010). The
total broadband density in India is at 0.7%. The GoI’s aim to
reach rural teledensity of 40% by 2014 from the current
levels and achieve broadband coverage of all 250,000 village
panchayats under the Bharat Nirman Program.
9LK\JPUN;HYPMMHUKH]HPSHIPSP[`VMJOLHWOHUKZL[THRPUNTVIPSL
telephony affordable for masses
4VIPSP[`HUK*VUULJ[P]P[`!;OLNYV^PUNULLKVMOPNOTVIPSP[`
and staying connected is the prime driver for the entire category.
0[PZL_WLJ[LK[OH[[OLZOHYLVM.Z\IZJYPILYZJ\YYLU[S`H[
about 3% would increase to about 20% by 2020 and data
services would increasingly account for a higher chunk
of revenues.
;OLZOHYLVM^PYLSLZZ[LJOUVSVN`PUIYVHKIHUKKH[HJHYKZ
etc) continues to be negligible (1.6%) and remains to be fully
exploited, especially in the case of broadband services.
;LJOUVSVN`KL]LSVWTLU[HUKOPNOLYHKVW[PVUVMV[OLY
enterprise data services (like ILD, NLD) is expected to drive
the growth.
| 40
2.6. Finance, Banking & Insurance
Indian Financial Intermediation market comprises of range of
players like Public Sector Banks, Private Banks, Foreign Banks,
Cooperative banks, Regional Rural Banks (RRB’s), Non Banking
Financial Companies (NBFC’s), Housing Finance Companies
/-*»Z 7VZ[ VMÄJLZ 4PJYVÄUHUJL 0UZ[P[\[PVUZ 4-0»Z HUK
neighbourhood money lenders.
Over the last decade, the size of the banking industry has grown
by 7.5 times. The business per employee has increased from
<:+ TU PU -@ [V TU PU -@ ÔPSL [OL WYVÄ[ WLY
employee increased from USD 2000 in FY06 to USD 8700 in
FY1041.
ICT in Banking and Financial Services
ICT has been instrumental in the global expansion of banks. It
has helped banks put in place alternate delivery channels such
as internet and phone. Mobile banking and ATMs are rapidly
becoming the prime delivery channels. Key areas where the ICT
has direct application in banking sector are:
,)HURPUN! Using alternative delivery channels such as Phone,
(;44VIPSL0U[LYUL[HUKJYLH[PVUVMUL^ÄUHUJPHSZLY]PJLZ
& products such as DMAT, utility bill payment, Electronic fund
transfer, Payment gateway etc.
*VYL)HURPUN:LY]PJLZ!Basic business of a bank or a
ÄUHUJPHSPUZ[P[\[PVU0[PZ[HRPUNKLWVZP[ZMYVTJ\Z[VTLYZHUK
lending to customers
,SLJ[YVUPJ*SLHYPUN:LY]PJL,*:! Mode of electronic fund
transfer in quick manner across branches of one bank to any
other bank through a central gateway
-\UK[YHUZMLYWYV[VJVSZ used by the banks
4\S[PHWWSPJH[PVU:THY[*HYKZ! Payment system based on
the inter-operable systems and technological components of
the entire system
,SLJ[YVUPJ+H[H;YHUZMLY!Sharing of various electronic
document
4VIPSL)HURPUN!Banking transactions using mobile phones
by bank customers
6[OLY0;ZWLJPÄJHYLHZ! In addition e-CRM, e-insurance and
various other softwares are used for accounting and other
functional requirements of the Insurance Company.
Mobile Banking:
Mobile banking is set to revolutionize the way banking is done
in India. Currently, 5% of mobile phone subscribers of reported
700 mn are registered for the service. Even among the registered
users, only a small fraction uses it regularly. Approximately
680,000 transactions worth USD 13.55 mn is conducted every
month. Mobile banking in India is set to generate a fee-based
PUJVTLVM<:+IUV]LY[OLUL_[Ä]L`LHYZTHPUS`KYP]LUI`
lower transaction costs, favourable regulatory environment and
the UID project.
SUCCESS FACTORS FOR MOBILE BANKING SOLUTIONS:
- Mass Reach
- Security Levels
- Convenient and easy
- Service provider agnostic
- Low set-up costs and time /
no additional infrastructure
- Competitive pricing with
existing methods
By 2015, USD 350 bn in payment and banking transactions
JV\SKÅV^[OYV\NOTVIPSLWOVULZJVTWHYLK^P[OHIV\[<:+
235 bn of total credit-and debit-card transactions today.
Key development in M-Banking:
047:0U[LYIHUR4VIPSL7H`TLU[Z:LY]PJLHTVIPSLIHURPUN
service, offers an instant, 24X7, interbank electronic fund
transfer service through mobile phones. It is one of the fastest
growing subsectors under the mobile banking.
7YLWHPK>HSSL[ZHUK4VIPSL76:!:[VYLK]HS\LWYLWHPK^HSSL[Z
are being experimented in a large way in India and it is believed
[OH[WYLWHPKIHZLKTVIPSL^HSSL[ZJHUKYP]LÄUHUJPHSPUJS\ZPVU
ICT in Insurance
Electronic Payments
The key areas of ICT applications in insurance sector are:
,*94! Insurance industry is a data-rich industry, and
thus, there is a need to use the data for trend analysis and
personalization. E-CRM helps in reducing the cost of marketing
ÔPJOPUJYLHZLZ[OLWYVÄ[VMI\ZPULZZ
,0UZ\YHUJL! This provides convenience to the customer to
have all information at the click of a button like on-line status
of balance premium, maturity date, dues and outstanding,
payments and payments etc.
In 2010, India’s electronic payments were USD 17 trillion. There
OHZILLUZPNUPÄJHU[NYV^[OPU[OLLSLJ[YVUPJWH`TLU[ZMYVT
below 5% of the total value in FY05 to 88% in FY10, largely
K\L[V[OLLSLJ[YVUPÄJH[PVUVMI\ZPULZZ[VI\ZPULZZWH`TLU[Z
41
IDRBT Report
41 |
With over USD 133 bn payments from bank accounts via ECS
and NEFT, electronic fund transfers have emerged as the muchpreferred option for transactions, with an increasing orientation
toward cashless and even cheque-less payments in India.
Payment Flows as Times of GDP
0UJVYWVYH[PVUVMHUHS`[PJZHZKVTPUHU[[LJOUVSVN`SLHKPUN[V
increase in cross sales
*94MVYPUUV]H[PVU
*94^P[O[OLHK]LU[VM>,)
THE GROWTH TREND
Peak volume of RTGS transactions, increased to 248000 transactions
in 2010, compared to 128000 transactions in 2009
<:
0;(3@
)9(A03
05+0(
NEFT volume of transactions processed has increased to 13.5 mn in
7H`TLU[-SV^Z[PTLZVM.+7
February 2011
Figure 17: Payment Flow as times of GDP41
IT Implementation and Management
Key trends and development in Electronic Payments segment:
,SLJ[YVUPJVUSPULTVKLVMWH`TLU[ZMVY[OLW\YJOHZLVM
goods and services
4HRPUNWH`TLU[Z[VW\ISPJ\[PSP[`JVTWHUPLZ
0TWSLTLU[H[PVUVM[OLUL_[NLULYH[PVUYLHS[PTLNYVZZ
settlement (NG-RTGS) system
7YLWHPKJHYKZPUJHYKIHZLKWHWLYIHZLKHUKV[OLYLSLJ[YVUPJ
formats, including virtual/mobile wallets
The RBI has set the guidelines for technological requirements
VUJVYLIHURPUNZVS\[PVUZ*):MVYHSS[OLIHURPUNHUKÄUHUJPHS
services companies. The major areas of focus for the banks in
the IT implementation are:
;LJOUVSVN`ZVS\[PVUZ0UMYHZ[Y\J[\YLTHUHNLTLU[:`Z[LTZ
management
0;PUMVYTH[PVUZLJ\YP[`PUZ[HSSH[PVUVMÄYL^HSSZUL[^VYRIHZLK
intrusion prevention system (NIPS) and host-based intrusion
prevention system (HIPS) as well as the installation of antispam and anti-virus)
0;NV]LYUHUJLYPZRHUKJVTWSPHUJL.9*
0;HZ:[YH[LNPJ,UHISLY[V9LK\JL*VZ[ZVY0UJYLHZL9L]LU\LZ
)HJR\WHUK+PZHZ[LY4HUHNLTLU[7SHU
,ULYN`4HUHNLTLU[
CRM Initiatives
CRM has been in India for a long time now, but its penetration,
LZWLJPHSS` PU [OL ÄUHUJPHS ZLY]PJLZ THYRL[ OHZ ILLU YH[OLY
limited. A higher penetration can be achieved only when banks
have a robust CRM system running across the entire organization
seamlessly across channels providing customers with the right
product at the right time through the right channel.
Following are the key areas on which the banks are focusing
upon to enhance their CRM capabilities:
*\Z[VTLYLK\JH[PVU
.YPL]HUJLZOHUKSPUN
*\Z[VTLYZLY]PJLKLSP]LY`JOHUULS
*YVZZJOHUULSPU[LNYH[PVU
KEY IT INITIATIVES OF BANKS FOR INTERNAL EFFECTIVENESS
+H[HJVSSLJ[PVUWHJRHNLMVY[OL]HYPV\Z)HUJHZZ\YHUJLWYVK\J[ZVM[OLIHUR
*LU[YHSPaLK^LIIHZLKPUZWLJ[PVUPUMVYTH[PVUZ`Z[LT
*SHPTPUNYLPTI\YZLTLU[VM-0;-\UKZPU[YHUZP[(;4JHZO[OYV\NO9(*:9LJVUJPSPH[PVUHJJV\U[PUNHUKJHZOZL[[SLTLU[
9L]PL^HUKYLUL^HSVMZ[Y\J[\YLKSVHUWYVK\J[Z
(\[VTH[LKZVS\[PVU[VTV]LHJJV\U[Z\UKLYZ\I]LU[PVUWYVK\J[Z[VUVUZ\I]LU[PVUWYVK\J[ZVU[OLZWLJPÄLKKH[L
(subvention end date)
0UW\[KH[HLU[Y`ZJYLLU[VLU[LYKH[HYLSH[LK[V[OL(;4HJJLZZ
6USPUL[H_HJJV\U[PUNZ`Z[LT63;(:LSLJ[YVUPJHJJV\U[PUNZ`Z[LTPUL_JPZLHUKZLY]PJL[H_,(:0,:;PTWSLTLU[LKPUHSS
designated branches
0U[LNYH[LK[YLHZ\Y`ZVM[^HYLMVYKVTLZ[PJHUKMVYL_[YLHZ\Y`VWLYH[PVUZPTWSLTLU[LK
/94ZVM[^HYL[VH\[VTH[L/9YLSH[LKHJ[P]P[PLZPTWSLTLU[LK"JLU[YHSPaLKWYVJLZZPUNVMZHSHY`WLUZPVUKLWVZP[WYVJLZZPUN
clearing operations for both inward and outward clearing
(\[VTH[LKWLYMVYTHUJLHWWYHPZHSZ`Z[LTZ
| 42
Financial Inclusion (FI):
-0 LU[HPSZ KLSP]LYPUN VM ÄUHUJPHS ZLY]PJLZ H[ HMMVYKHISL JVZ[Z
to disadvantaged and low income segments of society. It is
addressing the last mile issue through various technology
alternatives like mobile banking, conventional cards, smart
cards, Common Service Centres, low cost ATMs, hand held
devices etc.
Key facts:
TUMHYTLYOV\ZLOVSKZPU[OLJV\U[Y`V\[VMH
total of 89.3 mn43 households do not access credit, either from
institutional or non-institutional sources
+LZWP[L[OL]HZ[UL[^VYRVMIHURIYHUJOLZVUS`VM[V[HS
farm households are indebted to formal sources (of which onethird also borrow from informal sources
The primary models, which include the key stakeholders, adopted
by banks to establish a linkage with the excluded populace are:
)\ZPULZZJVYYLZWVUKLU[Z)*Z
:LSMOLSWNYV\WSPURHNL
)YHUJOSLZZIHURPUN·TVIPSL]HUZ
)\SRSLUKPUN[V4-0Z
4VIPSLIHZLK·47HPZHHUK047:
4VZ[IHURZOH]LHZL[\WHZLWHYH[L0;PUMYHZ[Y\J[\YLMVYÄUHUJPHS
inclusion. There are systems geared for low-value high-volume
transactions with implementations varying from 500 to 1,500
transactions per second.
;OL[LJOUVSVNPLZKLWSV`LKMVYÄUHUJPHSPUJS\ZPVUHYL!
)PVTL[YPJZTHY[JHYK
/HUKOLSKIPVTL[YPJ76:KL]PJL^P[OSVJHSSHUN\HNL
incorporation functionality) for authentication and transaction
.79:LUHISLKTVIPSLWOVULZ
*VYLIHURPUNZVS\[PVU
6[OLY0*;[VVSZ\ZLKMVYÄUHUJPHSPUJS\ZPVUHYL!7*206:2
Finger printing devices, Point of transaction terminal (POT)
Following are few pointers towards the future trends:
0UJYLHZLKLMMVY[MYVTIHURZ[VJV]LY[OL\UIHURLKWVW\SH[PVU
through the BC and SHG route
0ZZ\LVMHZTHY[JHYK[V[OLMHYTLYVUÔPJOHSSOPZ[YHUZHJ[PVUZ
are recorded, a hand-held terminal with the BC (Business
Correspondents) at the village level and a Central Processor
Unit (CPU) linking the smart cards and BC terminals with the
banks has emerged as the most apt solution
,_[LUZPVUVMIHURPUNV\[WVZ[Z[VYLTV[LSVJH[PVUZ^P[OV\[
having to open bank branches in the area due to recent
developments in banking technology and expansion of
telecommunication network in the hinterlands of the country
0UJYLHZLPU4VIPSLYLTP[[HUJLHUK[YHUZMLYZMYVT[OLTPNYH[VY`
labour
43
42
<5+7^VYRZOVW)HJRNYV\UK5V[L
Rangrajan Committee Report
43 |
Farm house-holds not accessing credit from formal sources as
HWYVWVY[PVU[V[V[HSMHYTOV\ZLOVSKZPZZPNUPÄJHU[SÒPNOPU[OL
North Eastern, Eastern and Central parts of the country42. Thus,
apart from the fact that exclusion in general is large, it also varies
widely across regions, social groups and asset holdings. The
poorer the group, the greater is the exclusion.
;OLNVHS[VWYV]PKLÄUHUJPHSZLY]PJLZ[VWLYJLU[TPSSPVUVM
the excluded rural cultivar and non-cultivator households across
different states by the year 2012 and 100% coverage (112 mn) by
year 2017 has been stipulated by the RBI.
THE MAIN TECHNOLOGY PARTNERS OF VARIOUS
COMMERCIAL BANKS WHICH ARE PROVIDING THE
ICT SOLUTIONS FOR FI ARE:
A Little World
FINO
EKO
TCS
N-logue Communications Pvt. Ltd.
NCDEX
Integra Micro Systems
Key Challenges for ICT in Banking:
While technology-focused possibilities of IT for banking may be
unlimited due to their application and adoption in India, to reengineering of existing practices and procedures to capitalize
effectively on IT, a conscious approach is recommended.
Following are some key challenges for IT in banking sector:
:LJ\YP[`-YH\K!;OLLSPTPUH[PVUVMTHU\HSYLJVYKZ^P[O[OL
introduction of electronic funds transfers and ATMs. This
PUJS\KLZPZZ\LZYLSH[LK[V[OLJVUÄKLU[PHSP[`VMPUMVYTH[PVU
prevention of data corruption and cyber crime.
*VZ[Z!0;PUP[PH[P]LZ\Z\HSS`JVUZ\TLHSV[VMJHWP[HSL_WLUKP[\YL
MVYIHURZHUK[OLILULÄ[ZHYLYLHSPaLKV]LYHWLYPVKVMTHU`
years to come.
9LZPZ[HUJL[VJOHUNLI`LTWSV`LLZ!0[OHZILLUVIZLY]LK
that large technology initiatives usually face a lot of resistance
to change and low acceptance by the employees and therefore
become the main reason for the failure of such implementation.
2.7. Security
Security has long been a hot point of debate among enterprises,
SMEs and consumers. From physical security to Web 2.0
security, there are alarms and concerns raised by one and all.
Web 2.0 in particular has suffered major losses in the past due to
security issues. Since the boom of social networking, there has
been a sharp increase in online attacks.
In recent times, India has featured consistently on the top of list of
the countries, where activities/incidences related to security breach
are high.
;OLZLJ\YP[`PUK\Z[Y`JHUILJSHZZPÄLKHZ!
1. Electronic Security and Surveillance Solutions
2. IT Security
| 44
2.7.1. Electronic Security & Surveillance
Surveillance and Security solutions have become of paramount
importance because of insurgency and terrorism becoming
a global phenomenon. With the traditional security platforms
being inadequate to address these new challenges, there is an
emerging need to move to intelligent electronic security solutions.
India’s electronic security market has grown from USD 135 mn44
in 2006 to USD 350 mn45 in 2010. Currently the domestic market
for electronic security products and services is estimated at USD
400-450 mn.46 As per industry sources, the market is expected to
grow at 25-30%47, higher than many other developed countries,
in coming years.
The Indian market is largely import driven. Large numbers of
Indian companies have collaborated with foreign manufacturers
for marketing foreign products in India. Security equipment is
being imported primarily from USA, UK, Germany, Singapore,
Italy, Hong Kong, Israel, Japan, Korea, China, and Taiwan.
Electronic Security Market in India can broadly be divided into
Ä]LJH[LNVYPLZ
1. CCTV/video surveillance systems
2. Access control systems
3. Intrusion Detection systems
4. Electronic article surveillance
5. Fire detection and alarm systems
The largest amongst these is the CCTV segment, commanding
some 55% of the entire market with annual growth rate of
around 45 %. Fire detection is also growing at good pace due to
YHWPK YLZPKLU[PHS JVUZ[Y\J[PVU YLX\PYPUN ÄYL KL[LJ[PVU HUK HSHYT
equipment.
Access Control systems (e.g. Biometric Reader) which recognize,
authenticate and authorize entry to the premise thereby ensuring
ultimate protection for premise, staff and assets account for about
30% of the Indian Electronic Security market share. While access
regulation is desirable, the cost factor is restricting the installation
of good access controls systems to only large organizations.
Intrusion Detection Systems unlike the rest of the world has not
found a very good market in India presumably due to lack of
awareness as well as education. The majority of installations are
purely residential. The market is expected to increase with the
increase in nuclear families.
Honeywell Security
Security Today
ADT Security, 2011
47
RNCOS Industry Research Solutions
44
45
46
45 |
Other equipment like Metal Detectors, X-Ray scanners and
baggage scanners command about 11% of the market share.
With growing security measures by Government, this segment is
expected to grow by about 30% annually.
The market is highly fragmented and organized players comprise
only 20% of the market but account for 80% of the revenues
Growth Drivers
The growth outlook for the electronic security industry in India is
very promising driven by:
;LYYVYPZ[HUK0U[LYUHS:LJ\YP[`;OYLH[!0UJYLHZLKKLTHUKMYVT
Government and sectors like Aviation, Power, Infrastructure,
Transport, Government and Oil & Gas
9HWPKKL]LSVWTLU[PUPUMYHZ[Y\J[\YL
.YV^PUNKLTHUKMYVT*VTTLYJPHSJLU[YLZZ\JOHZOV[LSZ
shopping malls, multiplexes and Booming Retail sector
-HSSPUNVMWYPJLZVMLSLJ[YVUPJZ`Z[LTZ
3V^0TWVY[+\[`*VTWHYLK[V[OLWYVOPIP[P]L0TWVY[
Customs Duty of the 80’s, the current rate of 35% is also
considered as growth driver for the industry.
.V]LYUTLU[»ZPUJYLHZLKL_WLUKP[\YLVU:LJ\YP[`
Challenges
The key challenges faced by the industry are:
*VTWL[P[PVUMYVTJOLHWLYWYVK\J[ZMYVTJV\U[YPLZSPRL;HP^HU
China and other countries in the South-East Asia
7YV]PKPUN*VZ[LMMLJ[P]LHUKHMMVYKHISLOVTLI\ZPULZZZLJ\YP[`
solutions would be important to capture Indian Market which is
price sensitive
*\Z[VTPaPUNNSVIHS[LJOUVSVN`WSH[MVYTZ[VZ\P[0UKPHU
conditions and requirements
(IZLUJLVMHUH[PVUHSZLJ\YP[`Z[YH[LN`
(^HYLULZZYLNHYKPUNH]HPSHISL;LJOUVSVN`:VS\[PVUZ
With the rapid growth of ICT sector in India in last decade,
security solutions industry has also evolved to address security
concerns faced by industry. Security management is becoming
the biggest challenge considering that the threats are becoming
increasingly sophisticated.
KEY PLAYERS
APJVT /VUL`^LSS :PLTLUZ 3[K /P[HJOP .VKYLQ :LJ\YP[` :VS\[PVUZ
ADT-Tyco Security, Digitals India Security Products
2.7.2. IT Security Solutions
The Indian IT security market in 2006-2007 was USD 46.8 mn48,
and by 2010 end, it surged to USD 464.4 mn on account of
increased demand from business sector and continuous IT
development in infrastructure. The continuing BPO boom and
rising emphasis on compliance with IS guidelines and regulations
such as HIPAA and the Sarbanes-Oxley Act by Western clients
are other key factors supporting growth in the Indian security
software solutions market.
Security Market is dominated by few large players. Symantec,
McAfee and Checkpoint happened to be the top three security
solution vendors in India in 200949.
2008-09 (USD MN)
374
2009-10 (USD MN)
388
Table 15: Indian Security Market
Data Quest Estimate, 2010
IT and BPO, BFSI and Government have been early adopters
of security solutions in India, boosting growth in the country’s IT
security industry.
Indian Security Services Market
Security services market is growing at a faster rate and is
expected to increase its contribution to IT security market next
few years. Large enterprises contribute more than 80% to the
overall security services market in India as compared to the
contribution by SMEs. According to Gartner, it is being seen
that core MSS (managed security services) provider offerings is
ILJVTPUNZ[HUKHYKPaLKHJYVZZ[OL(ZPH7HJPÄJYLNPVUÔPSLSVJHS
market conditions in this region continued to drive specialized
solutions and packaging.
Security Services Market 2009-2010
The overall information security market50 is split into security
products and security services.
+H[HJYHM[
>0WYV0UMV[LJO
Indian Security Products Market
Security Product market accounts for 80% of the security market
PU0UKPH>OPSL[OLWYVK\J[JSHZZPÄJH[PVULUJVTWHZZLZUL[^VYR
content, end point, data and wireless security, the network
security market can be further segmented into categories such
as Firewall/IPSec UTM, VPN; SSL VPN; and IDS IPS.
Data security segment has huge growth potential. With 3G and
WiMax technology setting in, telecom operators now need to
handle voice and data security threats from hackers, viruses,
trojans, etc.
FY09 (USD MN)
84
FY10 (USD MN)
91
:PM` 7HSHKPVU
/*3 6[OLYZ
Security Product Market 2009-2010
Figure 19: Indian Security Services Market: Share of Companies
FY09 (USD MN)
1304
FY10 (USD MN)
1340
*VU[LU[ :LJ\YP[`
5L[^VYR :LJ\YP[`
Figure 18: Security Product Market in FY10
48
49
50
Report-Global IT Security Market Forecast to 2012
IDC
Frost & Sullivan report
Data Quest Estimate, 2010
In recent times, India has featured consistently on the top of list of
the countries, where activities/incidences related to security breach
are high.
LEADING VENDOR IN NETWORK SECURITY
- Cisco
- Check Point
- Juniper
- Sonic Wall
- Fortinet
- McAfee
- Tipping Point
- Elitecore (Cyberoam)
| 46
Growth Driver & Potential
India features among the countries where malware, spam, or
anything that comes with a virus or Trojan attachment is the most
common.
0U0UKPHZLJ\YP[`ZWLUKPZZPNUPÄJHU[S`ZTHSSHWWYV_PTH[LS`
% of total IT budget in comparison to the worldwide, corporate
spend between 2.5%51 to 8 % of their total IT budget. This
illustrates a tremendous potential to make executives securityaware and help them build their security infrastructure.
Some of the trends driving growth of IT security Industry in India
are as follows:
9HWPKS`NYV^PUNIYVHKIHUKWVW\SH[PVUZHUKYLSH[P]LSÙL^
and expanding Internet infrastructures has an increased risk
of malicious activity and hence security protocols and measures
would be required. Currently India leads52 the Asian market in
terms of spams
0UJYLHZLKVUSPUL[LYYVYPZTHUK[OYLH[ZPZMVYJPUNNV]LYUTLU[Z
to have security as the most important aspect of governance
7YLZLU[S`:4,ZJVU[YPI\[L[VHYV\UKVUL[OPYKVM[OLUL[^VYR
security market; this contribution is expected to rise over the
UL_[ML^`LHYZ^P[OPUJYLHZLPUMVJ\ZVUÄYZ[SH`LYWLYPTL[LY
defence53.
,4HPS:LJ\YP[`)V\UKHY`HUK:LJ\YL>LI.H[L^H`^PSSZ[PSS
be the highest growing sub segments among SMEs. The SMEs
segment is projected to spend around 44-48% of the total IT
spending in the country from 2010-2012.
,U[LYWYPZLZHYLYLHSPaPUN[OLULLKMVYZLJ\YP[`[VNVIL`VUK
single point solutions such as anti-virus, anti-spam and content
ÄS[LYPUN[VTVYLOVSPZ[PJZ\P[LZVS\[PVUZZ\JOHZKH[HLUJY`W[PVU
endpoint security and data loss prevention (DLP).
+\L[V[OLPUJYLHZLPUVUSPULLJVTTLYJL[YHUZHJ[PVUZ
increasing data thefts, and maturing attacks, security solutions
are turning up as a “need of the hour.”
+LTHUKMYVT]HYPV\ZPUK\Z[Y`]LY[PJHSZZ\JOHZ)-:0[LSLJVT
healthcare automotive, manufacturing, and defence is expected
to further fuel the growth of the ICT Security industry.
9LN\SH[VY`HUKJVTWSPHUJLUVYTZHSZVZLLT[VILKYP]PUN[OL
heightened adoption of security solution.
Challenges
*VTWSL_UL[^VYRTHRLPTWSLTLU[H[PVUKPMÄJ\S[
3V^LYHKVW[PVUPU:4,ZK\L[VLJVUVTPJHUKI\KNL[
constraints. SMEs typically view security more as a cost centre
rather than as an investment
3V^WLUL[YH[PVUVM0;PUMYHZ[Y\J[\YLPU:4,Z
3HJRVMH^HYLULZZHUKYLMLYHISLJSPLU[Z
3HJRVMH^HYLULZZVMWYVK\J[H]HPSHIPSP[`HUKSV^[OYLH[
perception on consequences of data loss
3HJRVMHU`RPUKVMTHUKH[LZPU[LYTZVMYLN\SH[VY`JVTWSPHUJL
and legal framework is a major barrier for the next phase of
growth to take off.
51
52
53
MIEL e-Security Pvt. Ltd.
McAfee Threats Report
Frost & Sullivan, ICT Practice, South Asia and Middle East
47 |
05+0(
9<::0(
;/(03(5+
;<92,@
=0,;5(4
Figure 20: Global Spam Scenario
RBI prescribed guidelines to Banks on Data security is driving
higher adoption of security solutions such as encryption, two factor
authentication and Data loss prevention (DLP).
Government Initiative
;OL0UMVYTH[PVU;LJOUVSVN`(J[WYV]PKLZSLNHSYLJVNUP[PVU
for electronic data interchange and other means of electronic
communication.
*,9;0U0UKPHU*VTW\[LY,TLYNLUJ`9LZWVUZL;LHT
operational since 2004, is national nodal agency for responding
to computer security concerns. In recent Information
Technology Amendment Act 2008, it has been designated to
serve as national agency to perform the following in the area
of cyber security:
- Collection, analysis and dissemination of information,
forecasts and alerts about cyber incidents
- Taking emergency measures and do coordination
among various stakeholders
Despite the slow growth, due to economic slowdown last year, the
Indian IT security market is forecast to grow at CAGR of more than
20 percent in 2010-13. The growth momentum is likely to remain
inclined towards the service side, where most of the solution
providers will target managed services.
;OL+LWHY[TLU[VM0UMVYTH[PVU;LJOUVSVN`.V]LYUTLU[VM
India has issued a discussion draft on National Cyber Security
Policy54 on 26th March 2011 and is in the process to enact IT
security policy in India.
;OLYLJLU[NV]LYUTLU[OHZ[HRLUHUPUP[PH[P]LMVYJYLH[PUNH
YVV[JLY[PÄJH[PVUH\[OVYP[`ÔPJO^PSSPZZ\LKPNP[HSJLY[PÄJH[LZ
that would ensure secure commercial transactions.
54
INDUSTRY INITIATIVE
Data Security Council of India (DSCI) has been set up by NASSCOM
to meet IT security concerns in Indian context. DSCI is envisaged as
a credible and committed body to uphold a high level of data privacy
and security standards.
^^^TP[NV]PUZP[LZ\WSVHKFÄSLZKP[ÄSLZUJZWFWKM
| 48
2.8. Others
2.8.1. E-Commerce
E-commerce or Electronic Commerce market in India is in a
nascent, but experiencing high rate of growth. Indian market is
expected to grow in double digits over the next few years. The
Indian E-commerce industry is expected to be USD 10 bn55 in
2011, having a grown at a CAGR of 41.1% over the past 5 years.
E-Commerce Market in India
In USD millions
-
Source: Industry
Estimates
Figure 21: E-commerce Market in India55
E-Market Sectoral Share, 2010
The E-commerce business is largely dominated by online travel
industry, followed by E-Tailing (online retail of electronics) and
ÄUHUJPHS ZLY]PJLZ >OPSL [OL PUK\Z[Y` OHZ NYVÛ H[ H *(.9 VM
more than 40%, it is estimated that the retail segment itself has
grown 3 times as fast56. The industry is expected to register over
100% growth for the next few years.
KEY PLAYERS
+PNP[HS
+VÛSVHKZ
6[OLYZ
-PUHUJPHS :LY]PJLZ
,;YHPSPUN
Some major players are itctc.co.in, makemytrip.com, cleartrip.com,
`H[YHJVT ZUHWKLHSJVT ÅPWRHY[JVT SL[ZI\`JVT ZOHHKPJVT
bharatmatrimony.com, sharekhan.com, magicbricks.com, 99acres.
com, naukri.com, monster.com, etc
6USPUL;YH]LS
55
56
www.penn-olson.com/2011/03/19/e-commerce-in-india-to-hit-10-billion-this-year/
www.exchange4media.com/e4m/izone1/izone_fullstory.asp?section_id=4&news_id=43449&tag=35943
Figure 22: E-market Sectoral Share
| 49
Growth Drivers
;OL [YLUK VM VYKLYPUN WYVK\J[Z VUSPUL PZ KLÄUP[LS` NHPUPUN
momentum because of the following factors:
.YV^PUN4PKKSL*SHZZ¶;OLYPZLVM0UKPHHZHULJVUVTPJ
powerhouse has given rise to a very large empowered middle
class which is not averse to trying new technologies and ideas.
*VU]LUPLUJL-HJ[VY¶,JVTTLYJLLZWLJPHSS`PU[YH]LS
bookings saves time, reduces transaction cost and leads to
better decision making by offering more choices - thus radically
altering the booking/shopping experience.
3V^LYPUNJVZ[HUKPUJYLHZPUNWLUL[YH[PVUVM7*»ZHUK
broadband services
0UJYLHZPUN7LUL[YH[PVUVM*YLKP[+LIP[*HYKZ0U[LYUL[)HURPUN
– Credit/debit cards and internet banking are single biggest
facilitators in increasing the reach of E-commerce. Moreover,
the penetration of credit cards itself has increase tremendously
over the years, and is predicted to maintain this momentum.
Major Challenges
A developed ecosystem for e-commerce does not exist as is
the case in other international markets. Most companies are
reinventing their processes and business model at every stage,
rather than adopting successful models from the west, and thus
the environment remains quite challenging. The most prominent
challenges are:
)HJR^HYK+LSP]LY`Z`Z[LTZ3VNPZ[PJZ0UMYHZ[Y\J[\YLHUKWVVY
customer service
)\PSKPUN;Y\Z[PU[OL*H\[PV\Z0UKPHU)\`LY!
7YPTP[P]L7H`TLU[NH[L^H`ZZ`Z[LTZ
3HJRVMHWWYVWYPH[LIHJRLUKTHUHNLTLU[Z`Z[LTZ^HYLOV\ZL
management. ERP etc) which can be customised for operations
in India
50 |
NEW CATEGORIES
The product categories on e-commerce are expanding and now
several sites are offering apparels, accessories for men and women,
health and beauty products, vehicles, Software, consumer electronics
as product categories.
Flipkart, a popular e-commerce site started off with only book, but later
expanded to all the popular categories now even offers health care and
home appliances as product categories. It received venture funding of
USD 10 mn in 2010
2.8.2. E-Governance
Total Expenditure USD 3.38 bn
Governments across all the levels in the country- central,
state and local bodies- have been inducting Information and
Communication Technology (ICT) to provide citizens and
organizations with faster, accurate and convenient access to
government information and services.
E-Governance is a viewed as a strategic tool for transforming the
standards of governance and improving the quality of services
provided by the government to its people. To attain these goals,
the Government of India has launched the National e-Governance
Plan (NeGP) in 2006 with a budget of USD 2.6 bn in 200957.
The total public sector expenditure on IT was around USD 3.38
bn in 2009. Half of this spending was on hardware, followed by
IT Services (30 per cent) and software (20 per cent).57
Growth Trend
The Government started seriously focusing on interacting
and delivering public services to the general public using
e-Governance only after 2003. The E-Governance spending in
India has increased from USD 0.5 bn in 200358 to USD 8 bn i.e.
3% of annual budget in FY11. The overall e-government market
potential in India is expected to worth USD 26.043 bn.59
Market Structure
The NeGP comprises of 27 Mission Mode Projects (MMPs).
(U 447 PZ WYVQLJ[ PKLU[PÄLK I` [OL NV]LYUTLU[ ^P[O JSLHY
objectives and scope with measurable outcomes and timelines.
An MMP can be headed by any Ministry of the Central or State
government or by the Planning Commission.61 A comprehensive
list of MMP’s can be found in the appendix.
Apart from the MMP’s government is taking up projects of
capacity building for e-governance and for increasing the
penetration of Computers and broadband62.
Demand Drivers
Traditionally, the public services and delivery systems in India
OH]L ILLU PULMÄJPLU[ VWHX\L HUK WYVUL [V THZZP]L SLHRHNLZ
In a democratic system, this has lead people to aspire for
governments that can provide better systems. The governments
OH]L YLZWVUKLK I` [HRPUN ZL]LYHS PUP[PH[P]LZ PU [OL ÄLSK VM
e-governance. The public pressure for transparency and the
emergence of private sector in India (global IT hub) have been
the biggest driver for E-governance reforms.
The government designs its socialist programmes with an aim
to attain inclusive development and reaching out to the marginal
sections of the society is critical for the success of these
programmes.
/HYK^HYL
0;LZ
:VM[^HYL
Figure 23: Public Sector Spending on IT
KEY PLAYERS
Amongst the leading service providers in India, IBM, HP, Microsoft,
TCS, Wipro, HCL, 3i InfoTech, Patni systems, Infosys60 and Mahindra
Satyam are active in e-government programmes.59
The use of ICT enhances the reach of government and is one
of the key drivers for the governments to adopt ICT solutions.
Major Challenges
While there is a clear government urge and dedication to
e-governance schemes, there are several challenges, which are
required to overcome:
0UKPHOHZHWVW\SH[PVUVMIPSSPVU9VSSPUNV\[UL^ZLY]PJLZVY
upgrading old services for such a large user base is the biggest
challenge.
;OLWLUL[YH[PVUVMWLYZVUHSJVTW\[LYZWLYWLVWSL
and internet (6.9 per 100 people) is low in India63. The situation
is even worse in rural areas where around 70 % of the population
resides
4\S[P¶7HY[`+LTVJYHJ`HUKTVYL[OHUSVJHSIVKPLZ
lead to different systems across the country. The multiplicity in
Z`Z[LTZTHRLZP[KPMÄJ\S[[VZ[HUKHYKPZLSHYNLWYVQLJ[Z
3V^LYSL]LSZVMSP[LYHJ`HUKJVTW\[LYZH]]PULZZZL]LYLS`
restricts effectiveness of e-government projects
| 51
Key Initiatives
2VSRH[HIHZLKOVZWP[HSSL]LYHNLZLNV]LYUHUJLMVY[YVWPJHS
medicine. The hospital employs tele-medicine to assist doctors
PUY\YHSHYLHZHZ[OL`HUHSàLHUK[YLH[YLZPKLU[ZMYVTMHYÅ\UN
districts.
;OL2HYUH[HRHNV]LYUTLU[»Zº)OVVTP»WYVQLJ[OHZSLK[V[OL
computerization of centuries old system of handwritten rural
SHUKYLJVYKZ;OLWYVQLJ[PZL_WLJ[LK[VILULÄ[ZL]LUTPSSPVU
villagers in 30,000 villages.
0U.\QHYH[[OLYLHYL^LIZP[LZÔLYLJP[PaLUZJHUSVNVUHUKNL[
access to concerned government department on issues such
as land, water and taxes
0U/`KLYHIHK[OYV\NOL:L]HJP[PaLUZJHU]PL^HUKWH`
bills for water, electricity and telephones, besides municipal
[H_LZ;OL`JHUHSZVH]HPSIPY[OKLH[OJLY[PÄJH[LZWHZZWVY[
applications, permits / licenses, transport department services,
reservations among other things.
GOVERNMENT INITIATIVES FOR I
IN AGRICULTURE
AGRISNET
AgRIS
AGMARKNET
DACNET
DAIC
ARISNET
E-Sagu
Commodity Portals
E-Networking of labs
business.rediff.com/report/2009/oct/02/tech-big-opportunities-in-indian-it-market.htm
articles.economictimes.indiatimes.com/2004-11-05/news/27402631_1_e-governance-initiatives-e-service-delivery-citizens-service-facilitation-centre
<2;YHKL0U]LZ[TLU[:LJ[VYIYPLÄUN!0*;6WWVY[\UP[PLZPU0UKPH
60
www.mydigitalfc.com/opportunities/infosys-bags-e-governance-project-worth-rs-5000-cr-789
61
www.mit.gov.in/content/mission-mode-projects
62
www.indg.in/e-governance/e-governance/egov-plan
63
Survey of ICT for Education in India and South Asia, Extended Summary by PwC
57
58
59
52 |
ICT
2.8.3. Agriculture
Agriculture is the main occupation of the majority of rural
households in India, a bulk of which comprise tiny land
holdings. Though 58.4%64 of the population of India depends
on agriculture, the contribution of agriculture to the GDP of India
was only about 14.6%65 in FY10 (at 2004-05 prices) and in the
past several decades the sector has grown slowly.
Farming in India is being undertaken by a large section of
population under extremely diverse conditions. Most of these
farmers are small and marginal who do not have access to
relevant and timely information that could reverse the adverse
affect on agricultural growth and productivity.
ICTs play a key role in improving the availability of agricultural
production and market information in developing countries. ICTs
can help smallholder farmers maximize the return, by providing
them timely and relevant information in the following areas:
1. Access to experts in real time for Agri and Crop Advisory
2. Weather Forecasts and Alerts
3. Pest Information, Alerts and remedy
4. Market Price information in real time
5. Information on farm credit and subsidies
6. Information on Global Best Practices
There are ICT options in Agriculture each having its own pros
and cons:
ò Computer-based information systems require
Internet connectivity and hence heavy infrastructure.
ò SMS-based information systems are easy to
implement and work on all mobile phone models.
ò Voice-based information systems are easily
accessed by mobile phones and they work above the constraints
of illiteracy and local language support as faced by SMS solutions.
Tele-services-Kisan Sanchar Limited (IKSL), a subsidiary of
Indian Farmers Fertilizer Cooperative Limited (IFFCO), along with
Bharti Airtel-India’s leading mobile network operator- provides
mobile tele-services to the rural farmers.
ICT OPTIONS IN AGRICULTURE
- Touch Screen Kiosk
- Computer based
Information Systems
- Smart-phone based
Applications
- Radio based broadcasts
- Voice based mobile
solutions &IVRS
- SMS based mobile
messaging systems
- Community Video Programs
- Tablets based Information
Systems
Challenges for ICT implementation
in Agriculture in India
;OLWYVISLTZLUJV\U[LYLKÔPSLZL[[PUN\WHUKTHUHNPUN
these ICT initiatives such as ‘e-Choupals’ are primarily of
infrastructural inadequacies, including power supply, internet
connectivity in rural areas etc.
;OLYLPZHSZVJOHSSLUNLVMPTWHY[PUNZRPSSZ[V[OLÄYZ[[PTLPU[LYUL[
users in remote and inaccessible areas of rural India.
0SSP[LYHJ`PZHUVIZ[HJSLPUZ\JJLZZVM0*;ZVS\[PVUZZ\JOHZ:4:
based solutions
*YLH[PUNZVS\[PVUZPUSVJHSSHUN\HNLPZHSZVHJOHSSLUNL
3HJRVMZ[HUKHYKPaH[PVUHUKUVUH]HPSHIPSP[`VMYLSL]HU[JVU[LU[
ICT Initiatives in India
mKrishi - Tata Consultancy Services (TCS)’s mKrishi is a
proprietary mobile agro-advisory system that allows farmers
to send queries to agricultural experts in their local languages
through a mobile phone and receive personalized advice or
relevant information in the local language.
eChoupal66 - ITC’s eChoupal initiative enables rural Indian
MHYTLYZ [V LUOHUJL [OLPY LMÄJPLUJ` [OYV\NO WYPJL [YHUZWHYLUJ`
over the Internet. Launched in June 2000, ‘e-Choupal’, has
already become the largest initiative among all Internet-based
interventions in rural India. Solution has been scaled up to reach
40,000 villages, covering 4 million farmers in 10 states. It has
RPVZRZ^P[OLHJORPVZRZLY]PUNÄ]LVYZP_]PSSHNLZ
64
68
66
GOVERNMENT INITIATIVES FOR ICT
IN AGRICULTURE
AGRISNET
AgRIS
AGMARKNET
DACNET
DAIC
ARISNET
E-Sagu
Commodity Portals
E-Networking of labs
National Portal of India, 2010
Ministry of Agriculture, Government of India
ITC Website
| 53
2.8.4. Bio-Informatics
Bioinformatics is the application of computer science and
PUMVYTH[PVU [LJOUVSVN` [V [OL ÄLSK VM IPVSVN` HUK TLKPJPUL
Computers are used to gather, store, analyze and integrate
biological and genetic information which can then be applied to
gene-based drug discovery and development. Data management
tools based on bioinformatics have helped pharmaceutical
companies in easing the task of R&D analysis, thereby enhancing
their productivity by way of identifying new biomarkers for toxicity
HUK KY\N LMÄJHJ` KPHNUVZ[PJ IPVTHYRLYZ HZ ^LSS HZ UL^ KY\N
targets.
The Indian bioinformatics market67 in India derives large part of
its revenue from outsourcing activities. Driven by the lower wage
DOMESTIC
PURE PLAY
DOMESTIC IT
costs for skilled manpower, and lower infrastructure costs, the
Indian bioinformatics outsourcing services is estimated to grow at
25% and has reached USD 62 mn in 2010. Based on the current
market outlook, the Indian bioinformatics market is anticipated
to grow at a CAGR of around 10%68 between FY 11 and FY13.
The Indian bioinformatics industry comprises of vendors
with origins in the life sciences domain or the IT domain.
Bioinformatics market is segmented into Analysis Software &
Services Market, Content Market, and IT Infrastructure & Other
Services Market. It can also been segmented on the basis of
applications into Genomics, Proteomics, Pharmacogenomics,
and Drug Discovery market.
DOMESTIC
LIFE
SCIENCES
MULTINATIONAL
IT
MULTINATIONAL
PURE PLAY
Data Mining/Analysis
High
High
High
High
Low
Data Visualisation
High
Medium
Medium
Low
Nil
Data Integration
Low
Medium
Low
Nil
Nil
Data Creation
Low
Medium
High
Low
Nil
Cheminformatics
Medium
Low
Medium
Nil
Nil
Consulting
Low
Low
Low
Nil
Low
Customised Software
Development
Medium
Low
Medium
Low
High
Customisation of Products
Low
Nil
Low
Nil
Low
LIMS
Low
Medium
Low
Medium
Low
Clinical Trial Informatics
Nil
Medium
Nil
High
Nil
Table 16: Bioinformatics Vendor capabilities by category in India
While Pure play companies, Ocimum Biosolutions and Strand
Life Sciences have the highest level of specialization and focus
on bioinformatics, Indian and multinational IT companies such
as IBM, Mphasis, TCS, HCL Technologies, and Infosys are less
focused on the life sciences vertical. Avesthagen and Jubilant
Biosys are CRAMS companies’ also offering bioinformatics
services. Their level of specialization and focus is higher than
(domestic and multinational) IT companies but their core business
is contract research and/or manufacturing.
67
68
While Non-Standardization of Service Platforms & Modular
Systems, varying data formats used by Life science companies
are the challenges, focus on select niche areas could prove to be
ILULÄJPHSMVYWSH`LYZ
ValueNotes / KnowGenix report Dec,07- “Bioinformatics Outsourcing for Life Sciences – India Opportunity”
Report “Global Bioinformatics Market Outlook”2011 by RNCOS
54 |
SECTION III. Opportunities for Swiss SMES
SECTORS
KEY OPPORTUNITY
RELEVANCE FOR SWISS SMES
OBSERVATIONS
Animation &
Gaming
*\Z[VTJVU[LU[KL]LSVWTLU[
4\S[PTLKPH^LIKLZPNU
(UPTH[PVULU[LY[HPUTLU[
(UPTH[PVULK\JH[PVU
=-?
:VM[^HYLMVY4VIPSL.HTPUN
;OPZPZYLSH[P]LS`ZTHSSPUK\Z[Y`
in Switzerland.
6\[ZV\YJPUNVWWVY[\UP[`[V0UKPH
L_PZ[ZMVY:^PZZÄYTZ[VILJVTL
more cost competitive.
3HJRVMZ[YPUNLU[HU[PWPYHJ`SH^Z
and IPR protection in India would
be a key challenge in this segment
while outsourcing to India.
Automation
>PYLSLZZ:`Z[LTZ
0UK\Z[YPHS(\[VTH[PVU
)\PSKPUN:VS\[PVUZ
/VTL:HML[`:LJ\YP[`
6MÄJL(\[VTH[PVU
:JHUUPUN4VIPSP[`
9VIV[PJZ*VU[YVSSLYZ
and Software
/PNOS`KL]LSVWLK:^PZZ:LJ[VY
which refers to the production
of physical and electronic parts
making up a computer system
and the interaction between
users and computers by
interfaces. It encompasses
fast-developing technologies
Z\JOHZHY[PÄJPHSPU[LSSPNLUJL
enhanced reality and the creation
of intelligent interfaces.
;OLZLHYLNYV^PUNZLNTLU[ZPU
0UKPHHUKOH]LZPNUPÄJHU[WV[LU[PHS
if positioned well. Swiss
companies’ strong presence in
high technology niche segments
such as micro and
nanotechnologies, nuclear
[LJOUVSVN`JV\SKILZPNUPÄJHU[
value addition for Big Indian IT
players.
;OLYLPZHSZVZPNUPÄJHU[VWWVY[\UP[`
of Technology Transfer /
*VSSHIVYH[PVU^P[O0UKPHUÄYTZ
Bioinformatics
)PVPUMVYTH[PJZJVUZ\S[PUN
proteomics data¬base and
analysis tools, software systems
in the functional genomics area
etc.
6\[ZV\YJPUNIPVPUMVYTH[PJZ
services to India
:^P[aLYSHUKOHZHYPJO
bioinformatics cluster fueled by
universities researchers,
informatics specialists,
Govt. Support and thriving
pharmaceutical industry.
Computational Genomics, mass
spectrometry characterization
of proteins and small
molecules, proteome imaging,
3D visualizations and simulations
of Life Sciences Nanobiotechnology are strengths of
Swiss Firms
(K]HUJLKYLZLHYJOHWWSPJH[PVUZ
in Bioinformatics could add value
to Indian Biotech/Pharma sector.
6WWVY[\UP[PLZ[VLU[LY0UKPHU
Market in niche segments such as
Data Visualization &
Cheminformatics
:^PZZ:4,ZHYL.VVK(JX\PZP[PVU
opportunities for Big Indian
IT players interested in entering
Bioinformatics segment
e-Governance
(Education &
Others)
+PZ[HUJL3LHYUPUN
)\PSKPUN0*;0UMYHZ[Y\J[\YL
<UPX\L0KLU[PÄJH[PVU5\TILY
6[OLY.V]LYUTLU[M\UKLK
ICT Projects
:^P[aLYSHUKOHZZ\JJLZZM\SS`
implemented Governance
projects such as e-connection of
schools in 2007 and
3LHYUPUNJV\SKILOLSWM\SMVY
implementing India’s ICT initiative
in Education. JV with an
LZ[HISPZOLK0UKPHUÄYT^V\SK
be a good way to venture in to
Government Projects in India.
| 55
Finance, Banking >LHS[O4HUHNLTLU[L7VY[MVSPV :^P[aLYSHUKOHZLZ[HISPZOLK)-:0 3H\UJOVM.YLJLU[S`PZWYV]PKPUN
and Insurance
:VM[^HYLMVYIHURPUNZLJ\YP[`"
ICT sector and can offer
higher data transfer rate; adding
secure data transfer; Fraud
products/ services required in
to its quick-win solutions through
Detection; risk management;
Indian BFSI sector for its next
mobile application is expected
lending and mortgage
phase of growth targeting Public
to bring potential growth in mobile
management etc
Sector Banks/ Rural Banking/
banking and insurance industry in
0*;Z`Z[LTZMVYYL[HPS
Small and medium Banks,
India.
banking – core systems and
Financial Institutions.
*VSSHIVYH[PVU^P[O0;ÄYTZPU0UKPH
channels; e-Banking; customer
:^PZZÄYTZJV\SKIYPUN
could be a way to access BFSI
management
innovative technology solutions
opportunity.
:4(9;JHYKHUK,-;76:
in the domain of mobile banking,
/ point of sale equipment and
smart card, banking data
systems
security, rural connectivity.
0UZ\YHUJL7YVK\J[ZWVSPJ`HUK
claims servicing
)\ZPULZZWYVJLZZTHUHNLTLU[
(BPM)
Healthcare
;LSLTLKPJPUL+L]PJLZ
/VZWP[HS0UMVYTH[PVU:`Z[LT
/LHS[O0UZ\YHUJL
*SV\K)HZLK:LY]PJLZ
,/LHS[O
/LHS[OJHYLPZHULZ[HISPZOLK
industry in Switzerland hence
ICT products/ services are
already tested
9+*VSSHIVYH[PVUPUHK]HUJLK
research areas-Stem Cell,
Nanotechnology
/\NL.YV^[O7YVZWLJ[ZPU0UKPH
due to possibility of Rural
Penetration
7YPJPUNVM7YVK\J[VYZLY]PJL^V\SK
be key for capturing Indian SMEs
attention
3VJHS*\Z[VTPaH[PVUVML_PZ[PUN
solution would be a challenge
Manufacturing
(Automotive/
Electrical etc)
:VM[^HYLHWWSPJH[PVULN*(+
CAM) for designing automobiles,
components and equipment.
(WWSPJH[PVUZMVY497
ERP systems, supply-chain,
management
0;(UHS`[PJZMVYPTWYV]LK
business performance (BI)
Swiss IT service Providers provide
the services
+LZPNU+L]LSVWTLU[
6WLYH[PVU
7HJRHNLKZVM[^HYL
0*;:`Z[LTZ5L[^VYRZ
0*;HWWSPJH[PVUHTVUN0UKPHU
Manufacturing SMEs is increasing
WYPTHYPS`K\L[VIYPUNLMÄJPLUJ`HUK
meet global standards. SME needs
however may be based on local
market requirement hence
suggested way, to capture this
market, is by having a local partner.
RFID (Radio
Frequency
0KLU[PÄJH[PVU
0TWSLTLU[H[PVUVM9-0+PU
Various Industry Segments
)LZWVRL*VZ[JVTWL[P[P]L
solutions to SMEs in India
:PNUPÄJHU[SVJHSL_WLYPLUJLVM
Swiss Companies in RFID software
applications. Solutions provided in
following areas:
0U[LNYH[LKJPYJ\P[KLZPNU
+L]PJLKL]LSVWTLU[
:VM[^HYLPU[LNYH[PVU
-PLSKPUZ[HSSH[PVU
(NYV^PUNVWWVY[\UP[`PU0UKPH
primarily to track, manage and
optimize manpower or product
movement.
9L[HPS3VNPZ[PJZ:\WWS`
Chain, Healthcare, Security and
Government are expected to give
this an impetus in India.
56 |
Security
0UMYHZ[Y\J[\YL:LJ\YP[`(PYWVY[
Rail, Maritime)
7LYPTL[LY0U[Y\ZPVU+L[LJ[PVU
0UK\Z[YPHS:LJ\YP[`
0U[LNYH[LKZ\Y]LPSSHUJLZ`Z[LTZ
7\ISPJ,]LU[Z
.V]LYUTLU[
+H[H:LJ\YP[`
,UJY`W[PVUZ`Z[LTZ
(\[VTH[LK[OYLH[KL[LJ[PVU
:PNUPÄJHU[:^PZZL_WLY[PZL
in Technologies devoted to the
security of persons, goods and
data, management of
PKLU[PÄJH[PVUZ`Z[LTZ
ÄUNLYWYPU[ZPYPZ9-0+HZ
^LSSHZ[OLZLJ\YP[`VMÄUHUJPHS
transactions.
0U[LNYH[LK:VS\[PVUZHYL
developed using acoustic,
seismic, infrared imaging, video
imaging, radar sensors and other
technologies.
>P[O[OLHK]LU[VM[LJOUVSVN`HUK
rise in level of terrorist attacks, the
traditional methods of surveillance
and security are inadequate,
and hence the rising need to
adapt advanced technology- in
India. 4G wireless technology for
security installations is the next big
opportunity in India.
Telecom
=HS\L(KKLK:LY]PJLZT
commerce)
)YVHKIHUK.YV^[O
.>P4(?[LJOUVSVNPLZ
.YLLU,ULYN`MVY;LSLJVT0UMYH
4VIPSL)HURPUN7H`TLU[
Solutions
4VIPSLTLKPH
+PNP[HS+VÛSVHK
:^PZZJVTWHUPLZOH]LH
developed and saturated telecom
segment. Growth is driven by M
commerce and Mobile media
2L`(YLHZ:LJ\YP[`ZVS\[PVUZPU
m - commerce, data
transportation through mobile,
application of cloud computing,
mobile multimedia solutions
>OPSLP[^V\SKILKPMÄJ\S[[VLU[LY
mobile telephony market due to
stiff competition, opportunities
could be exploited by creating
innovative solutions/products for
telecom vendors in India.
Table 17: Opportunities foe Swiss SMEs
| 57
SECTION IV. Accessing Indian Market
4.1. Investment Environment
India has successfully reformed all the constituents of the
Information Technology, Internet and Communication Industry.
Being a signatory to the Information Technology Agreement
of the World Trade Organization, the customs duty on all the
ZWLJPÄLKP[LTZOHZILLULSPTPUH[LKMYVT4HYJO
Technology Agreement items to Domestic Tariff Areas (DTA)
provided the realization is in free foreign exchange.
The import of second hand computers including personal
computers and laptops fall under the restricted import category.
Industrial Approval Policy
Special Economic Zones (SEZ) Schemes
Industrial Licensing has been virtually abolished in the Electronics
and Information Technology sector except for manufacturing
electronic aerospace and defence equipment. There is no
reservation for public sector enterprises and private sector
investment is allowed in almost all sectors. Electronics and
Information Technology industry can be set up anywhere in the
country, subject to clearance from the authorities responsible for
control of environmental pollution and local zoning and land use
regulations.
:WLJPHS,JVUVTPJAVUL:,APZHZWLJPÄJHSS`KLSPULH[LKK\[`MYLL
enclave and is deemed to be foreign territory for the purposes
VM[YHKLVWLYH[PVUZHUKK\[PLZHUK[HYPMMZ:,A\UP[TH`PTWVY[
procure from the DTA without payment of duty all types of goods
and services, including capital goods, whether new or second
hand, required by it for its activities or in connection therewith,
provided they are not prohibited items of imports.
Foreign Investment Policy
A foreign company can start operations in India by registration
of its company under the Indian Companies Act 1956. Foreign
equity in such Indian companies can be up to 100 per cent. At
the time of registration it is necessary to have project details,
local partner (if any), structure of the company, its management
structure and shareholding pattern.
Approval of foreign investments is through either automatic route
or Government approval.
Foreign technology induction is encouraged both through FDI
and through foreign technology collaboration agreement. The
agreements can be approved either through the automatic route
under powers delegated to the Reserve Bank of India (RBI) or
otherwise by the Government.
Foreign Trade Policy
In general, all Electronics and IT products are freely importable,
with the exception of some defence related items. All Electronics
and IT products, in general, are freely exportable, with the
exception of a small negative list which includes items such as
high power microwave tubes, high end super computer and data
processing security equipment.
Export Promotion Capital Goods scheme (EPCG) allows import of
capital goods at lower custom duty. The export obligation under
,7*.:JOLTLJHUHSZVILM\SÄSSLKI`[OLZ\WWS`VM0UMVYTH[PVU
58 |
The units are also permitted to import goods required for the
approved activity, including capital goods, free of cost or on
SVHUMYVTJSPLU[Z:,A\UP[TH`VU[OLIHZPZVMHÄYTJVU[YHJ[
between the parties, source the capital goods from a domestic/
foreign leasing company.
Export Promotion Schemes
Special schemes are available for setting up Export Oriented Units
for the Electronics/IT Sector. Various incentives and concessions
are available under these schemes. The schemes are:
,_WVY[6YPLU[LK<UP[,6<
,SLJ[YVUPJZ/HYK^HYL;LJOUVSVN`7HYR,/;7
:VM[^HYL;LJOUVSVN`7HYR:;7
EOU/EHTP/STP units undertaking to export their entire
production of goods and services, except permissible sales in
the Domestic Tariff Area (DTA), may be set up under the EOU,
EHTP or STP Scheme for manufacture of goods, including
repair, re-making, reconditioning, re-engineering and rendering
of services. Trading units, however, are not covered under these
schemes.
100% FDI is permitted through automatic route for the units set
up under these schemes. These units may import and/or procure
from the DTA or bonded warehouses in DTA, without payment
of duty, all types of goods, including capital goods, required for
its activities, provided they are not prohibited items of import in
the ITC (HS). The units shall also be permitted to import goods
including capital goods required for the approved activity, free of
cost or on loan/lease from clients.
Software Technology Parks of India (STPI)
STPE scheme has played a pivotal role in catalyzing the growth
of this sector and supporting its rapid proliferation across the
country. The tax holiday has helped attract much needed
investments (MNC and Indian) in the sector and the virtual
TVKLS OHZ HSSV^LK ÄYTZ [V H]HPS ILULÄ[Z ^P[OV\[ JVUZ[YHPU[Z
on their choice of location – encouraging entrepreneurship and
integrated growth.
The Central Government has also provided many tax and other
incentives to boost investment in the IT outsourcing industry in
0UKPH:VTLVM[OLILULÄ[ZHJJY\PUN[V0;ÄYTZHYL!
`LHY[H_OVSPKH`MVYJVTWHUPLZPU]VS]LKPUJVUZ[Y\J[PVUHUK
or maintenance/operation of an infrastructure complex
`LHY[H_OVSPKH`[VÄYT[OH[NLULYH[LHUKVYKPZ[YPI\[LWV^LY
`LHY[H_OVSPKH`[V[LSLJVTÄYTZWYV]PKPUNPU[LYUL[HUK
broadband services
`LHY[H_OVSPKH`[V0;ÄYTZZL[[PUN\W]LU[\YLPUUV[PÄLK0;
WHYRZHUK:WLJPHS,JVUVTPJAVULZ:,A
`LHY[H_OVSPKH`MVY0;HUKV[OLYÄYTZZL[[PUN\WHWYVQLJ[PU
backward districts and states
0;V\[ZV\YJPUNHUKV[OLYÄYTZHSZVNL[[H_PUJLU[P]LZVU
L_WVY[ZHZ[H_PZKLK\J[LKVUWYVÄ[MVYL_WVY[LYZZL[[PUN
\UP[ZVU:,A»Z,SLJ[YVUPJ7YVJLZZPUNAVULZ,7A:VM[^HYL
Technology Parks (STP)
([[YHJ[P]L[H_PUJLU[P]LZHYLH]HPSHISLVUL_WLUKP[\YLMVY
research and development including deduction of 150% on
ZJPLU[PÄJYLZLHYJOHUK`LHY[H_OVSPKH`MVYZJPLU[PÄJHUK
industrial research R&D companies.
| 59
4.2. Key Issues & Requirements
0[OHZILLUZLLUPU[OLWYL]PV\ZZLJ[PVU[OH[0UKPHWYLZLU[ZZPNUPÄJHU[VWWVY[\UP[`PU[OL0*;KVTHPUHJYVZZ]HYPV\ZPUK\Z[Y`]LY[PJHSZ
However, the uniqueness of Indian market arising out of its size, diversity, culture and business practices offers its own sets of challenges.
It is therefore important for organizations evaluating the India opportunity to understand the critical success parameters.
;OL[HISLILSVÔPNOSPNO[Z[OLRL`PZZ\LZHUK[OLHZZVJPH[LKYLX\PYLTLU[Z[OH[ÄYTZZOV\SK[HRLPU[VJVUZPKLYH[PVUÔPSLKLJPKPUNVU
their India Business Strategy.
ISSUE
FACTS/ DESCRIPTION
IMPLICATIONS
Building Scale/Managing Growth
India is a large country with over 1.2 Billion
people, 16 national languages and 28 states/
7 Union Territories
Managing cultural diversities, logistics
network, overcoming language barriers and
divergent business practices make building
scale in India (for domestic market) an onerous
task. Operational/ Execution Skills are of
paramount importance.
Organizations focusing on tapping domestic
market opportunity would preferably want
local partners to manage these complexities.
This also makes hiring local top management
an important decision parameter.
Focus should be to start operations in one or
few regions and then gradually expand into
other territories
ICT is dominated by large Indian
MNCs
While top 7 companies account for the
majority of revenue by the industry, India
has a vibrant ICT SME sector with over
ÄYTZOH]PUNSLZZ[OHU<:+4PSSPVU
revenue
Excellent opportunity and eco-system for
:^PZZ:4,[VÄUK[OLPYL_WLY[PZLUPJOL
or initiate local operations with acquisition/
partnership
Product vs. Services Capabilities
The growth of Indian software and ICT
businesses have been on service model –
therefore most innovations are in processes
and not on products
Serious gaps in skills to build products/
brands across the industry. Product focused
Swiss SMEs can utilize these gaps.
Talent Management
ICT sector is dominated by high attrition rate The Talent Management requires tactical and
(upto 20%), supernormal salary growth rates local practices to be followed. Standard HR
(10-50% per annum) and uncertainties of
practices do not work.
people joining (even after acceptance of offer)
Regulatory
The permissions/ licenses etc to start
operating in India are generally streamlined.
While entry processes have been streamlined,
it might take 15- 30 days to register a
company
Direct and Indirect Taxes, Incentives and legal
compliances are governed by complicated
Local advice and support is required for daymesh of different departments in India.
to-day operations.
60 |
Government sector opportunity
management
Competitive Advantage
Various sub-sectors like e-governance,
healthcare, education etc are dominated by
government and semi-government sector
where bureaucracy dominates the decision
making process
The red-tapism and process delays are still
ZPNUPÄJHU[PU0UKPHHUKSVJHSWHY[ULYPZHT\Z[
to secure these opportunities.
The standard competitive advantages of
[LJOUVSVNPJHSZ\WLYPVYP[`HUKVYÄUHUJPHS
strengths are no guarantee for success in
India
Execution capabilities and price
competitiveness are critical to tap Indian
market.
(SZVZPNUPÄJHU[WH[PLUJLHUKWLYZL]LYHUJLPZ
required in building these businesses (contract
awards may take 12-18 months).
Long term investment perspective is a prerequisite.
Table 18: Key Requirement for Entering India Market
| 61
SECTION V. Conclusions
The objective of this report has been to provide a consolidated
background on the Indian ICT industry and opportunities for
Swiss SMEs in various industry verticals in ICT solutions.
The strength of Indian ICT industry and its global competitiveness
has been the biggest success story of India over the last 2
decades. India has not only become a dominant IT player in
world but also the success has led to stupendous economic
growth and created rich and successful middle class exposed to
international standards.
However, this has been almost entirely focused on services for
L_WVY[Z THYRL[ ;OPZ PZ SPRLS` [V JOHUNL ZPNUPÄJHU[S` PU M\[\YL
India’s deep penetration of mobile phones (aided with the lowest
cost mobile telephony costs), increased need for convenience
for the urban middle class consumer and focus on increasing
competitiveness of Indian manufacturing industry is opening up
the domestic market.
Following are the Growth Drivers of Indian ICT Industry:
+LTVNYHWOPJZOPM[Z^PSSM\LS[OLNYV^[OVMUL^ZLJ[VYZ
(healthcare, education, security), markets (BRIC, Japan,
Germany) and service lines (process transformation for
productivity improvement)
,JVUVTPJZVJPHSLU]PYVUTLU[HSHUK[LJOUVSVN`[YLUKZ^PSS
create hitherto unseen opportunities (e.g., climate change,
servicing SMEs)
0UJYLHZLK0;HKVW[PVUPUUV[VUS`PU[OLSHYNLTPKZPaLK
companies, but also in the 35 mn strong small and medium
business (SMB) segments is expected to drive growth in the
future.
.V]LYUTLU[»ZPUP[PH[P]LMVYPUJS\ZP]LNYV^[O+L]LSVWTLU[
in India
Swiss SMEs would need to identify the need of their association
with India which we believe could be one of the following:
;HW[OLKVTLZ[PJTHYRL[MVYP[ZWYVK\J[ZHUKZLY]PJLZ
This would require good understanding of the Indian market,
the concerned sector and cost effective solutions
4HRL0UKPHHZ[OLPYKL]LSVWTLU[9+JLU[LY
This has been a time tested Indian strength and typically the
process followed is initiation through outsourcing/ developing
an Indian partner and then starting own/ in-house center
,_WVY[WYVK\J[ZZLY]PJLZKL]LSVWLKPU0UKPH
Swiss SMEs can use their international market understanding
HUKWYVK\J[IYHUKI\PSKPUNJHWHIPSP[PLZÔPSLZPNUPÄJHU[S`
reducing development costs by utilizing India’s strengths in
solutions development
6\[ZV\YJL)760;,::LY]PJLZ276
Swiss SMEs can increase their competitiveness by ensuring
cost effective solutions for various business operations
(STVZ[HSSZLJ[VYZVM:^PZZ,JVUVT`^V\SKÄUKHK]HU[HNLZPU
\[PSPaPUN0UKPH»Z0*;Z[YLUN[OVYÄUKHWWSPJH[PVUZMVY0UKPHUTHYRL[
0UKPHU THYRL[ VMMLYZ ZPNUPÄJHU[ ZJHSL ILULÄ[Z /V^L]LY ZVTL
of the key sectors that inherent Swiss strengths could provided
added advantages are BFSI (Banking. Financial Services and
Insurance), Automation, E-commerce (E.g. tourism), Security
and Surveillance, and technology dominated manufacturing
industries.
SECTORS
KEY OPPORTUNITY
Animation & Gaming
*\Z[VTJVU[LU[KL]LSVWTLU[
4\S[PTLKPH^LIKLZPNU
(UPTH[PVULU[LY[HPUTLU[
(UPTH[PVULK\JH[PVU
=-?
:VM[^HYLMVY4VIPSL.HTPUN
Automation
>PYLSLZZ:`Z[LTZ
0UK\Z[YPHS(\[VTH[PVU
)\PSKPUN:VS\[PVUZ
/VTL:HML[`:LJ\YP[`
6MÄJL(\[VTH[PVU
:JHUUPUN4VIPSP[`
9VIV[PJZ*VU[YVSSLYZHUK:VM[^HYL
62 |
Bioinformatics
)PVPUMVYTH[PJZJVUZ\S[PUNWYV[LVTPJZKH[HÏHZLHUKHUHS`ZPZ[VVSZZVM[^HYLZ`Z[LTZPU[OL
functional genomics area etc.
6\[ZV\YJPUNIPVPUMVYTH[PJZZLY]PJLZ[V0UKPH
e-Governance (Education &
Others)
+PZ[HUJL3LHYUPUN
)\PSKPUN0*;0UMYHZ[Y\J[\YL
<UPX\L0KLU[PÄJH[PVU5\TILY
6[OLY.V]LYUTLU[M\UKLK0*;7YVQLJ[Z
Finance, Banking and Insurance
>LHS[O4HUHNLTLU[L7VY[MVSPV
:VM[^HYLMVYIHURPUNZLJ\YP[`"ZLJ\YLKH[H[YHUZMLY"-YH\K+L[LJ[PVU"YPZRTHUHNLTLU["
lending and mortgage management etc
0*;Z`Z[LTZMVYYL[HPSIHURPUN¶JVYLZ`Z[LTZHUKJOHUULSZ"L)HURPUN"J\Z[VTLY
management
:4(9;JHYKHUK,-;76:WVPU[VMZHSLLX\PWTLU[HUKZ`Z[LTZ
0UZ\YHUJL7YVK\J[ZWVSPJ`HUKJSHPTZZLY]PJPUN
)\ZPULZZWYVJLZZTHUHNLTLU[)74
Healthcare
;LSLTLKPJPUL+L]PJLZ
/VZWP[HS0UMVYTH[PVU:`Z[LT
/LHS[O0UZ\YHUJL
*SV\K)HZLK:LY]PJLZ
,/LHS[O
Manufacturing (Automotive/
Electrical etc)
:VM[^HYLHWWSPJH[PVULN*(+*(4MVYKLZPNUPUNH\[VTVIPSLZJVTWVULU[ZHUK
equipment.
(WWSPJH[PVUZMVY497,97Z`Z[LTZZ\WWS`JOHPUTHUHNLTLU[
0;(UHS`[PJZMVYPTWYV]LKI\ZPULZZWLYMVYTHUJL)0
Table 19: Sector-wise Key Opportunities in Indian ICT Sector
At the same time, the challenges unique to Indian economy and
J\S[\YLYLTHPUZPNUPÄJHU[;OLKPMÄJ\S[`PUZJHSPUN\WI\ZPULZZLZ
^HYMVY[HSLU[VWLYH[PUNPULMÄJPLUJPLZHUKI\YLH\JYHJ`YLX\PYLZ
patience, perseverance and local cultural understanding to be
successful for foreign enterprises.
Over the years, the process to start a business in India has been
Z[YLHTSPULK ZPNUPÄJHU[S` ;OL PUMYHZ[Y\J[\YHS IV[[SLULJRZ OH]L
been resolved in key clusters and continue to improve in semi-
urban and rural areas. The economic reforms continue to be on
ÄYTMVV[PUNHUK[OL0*;ZLJ[VYOHZTPUPTHSPZ[PJYLZ[YPJ[PVUZ;OL
governments at all levels (Union, State and Municipalities) are
proactive in supporting ICT enabled solutions and organizations.
0UKPH PZ H JVTWLSSPUN Z[VY` HUK WYV]PKLZ ZPNUPÄJHU[ NYV^[O
opportunities for both international and domestic market. Swiss
SMEs would do well to evaluate and participate in this growth.
| 63
SECTION VI. Annexure & References
6.1. Network Readiness Index for India69
Networked Readiness Index
Edition (No. of economies)
Score Rank
2010-2011 (138)…………………………4.0………48
2009-2010 (133)…………………………4.1………43
2008-2009 (134)…………………………4.0………54
2007-2008 (127)…………………………4.1………50
2006-2007 (122)…………………………4.1………44
Infrastructure environment
3.1
81
Phone lines/100 pop
3.1
110
Mobile network coverage, % pop.
Covered
83
104
Secure Internet serves/million pop
1.6
104
Int’l Internet bandwidth, Mb/s per
10,000 pop
2.2
95
Environment component
3.9
58
Electricity production, kWh/capita
714.3 104
Market environment
4.4
41
Tertiary education enrollment rate, %
13.5
101
Venture capital availability*
3.2
31
4.7
30
Financial market sophistication*
5.2
35
8\HSP[`ZJPLU[PÄJYLZLHYJO[YHPUPUN
services*
Availability of latest technologies*
5.6
41
Availability of scientists & engineers*
5.2
15
State of cluster development*
4.2
29
Availability research & training services*
4.4
5.1
Burden of government regulation*
3.0
94
Accessibility of digital content*
4.5
93
Extent & effect of taxation*
3.0
36
;V[HS[H_YH[LWYVÄ[Z
63.3.
119
Readiness component
4.8
33
No. days to start a business
29
94
Individual readiness
5.5
21
No. procedures to start a business
12
116
Quality of math & science education*
4.7
38
Freedom of the press
6.1
25
Quality of educational system*
4.3
39
Political and regulatory environment
4.3
5.2
Adult literacy rate, %
62.8
120
Effectiveness of low-making bodies*
4.3
36
Residential phone installation (PPP $)
17.9
12
Laws relating to ICT*
4.5
39
Residential monthly phone subscription
(PPP $)
7.2
44
Judicial independence*
4.8
40
Fixed phone tariffs (PPP $)
0.06
36
,MÄJPLUJ`VMSLNHSZ`Z[LTPUZL[[SPUN
disputes*
4.1
46
Mobile cellular tariffs (PPS $)
0.06
4
,MÄJPLUJ`VMSLNHSZ`Z[LTPUJOHSSLUNPUN
regs*
4.2
37
Fixed broadband Internet tariffs (PPP $)
14.9
6
Buyer sophistication*
3.8
4.3
Property rights*
4.5
60
Business readiness
4.5
33
Intellectual property protection*
3.6
65
Extent of staff training*
4.1
58
Software piracy rate, % software installed
65
58
Quality of management schools*
5.1
23
No. procedures to enforce a contract
46
121
Company spending an R&D*
3.6
37
No. days to enforce a contract
1420
133
University- industry collaboration in R&D*
3.7
58
Internet & telephony competition, 0-6
(best)
6
1
Business phone installation (PPP $)
17.9
5
64 |
Business monthly phone subscription
(PPP $)
7.2
21
Internet access in schools*
3.8
70
Local supplier quality*
4.6
60
Use of virtual social networks
4.8
89
Computer, communication & other
services imports, % services imports
34.6
55
Impact of ICT on access to basic services
4.9
42
Business Usage
3.8
47
Government readiness
4.5
47
Gov’t success in ICT promotion
5.2
22
Gov’t prioritization of ICT*
5.3
35
0*;\ZLNV]»[LMÄJPLUJ`
4.7
41
Gov’t procurement of advanced tech.*
3.5
75
Government Online Service Index, 0-1 (best)
0.37
53
Importance of ICT to gov’t vision*
4.6
32
E-Participation Index, 0-1 (best)
0.20
56
Business phone installation (PPP $)
17.9
5
Usage component
3.3
67
Business monthly phone subscription (PPP $)
7.2
21
Individual usage
2.8
98
Local supplier quality*
4.6
60
Mobile phone subscription/100 pop
43.8
119
34.6
55
Cellular subscriptions w/data, % total
n/a
n/a
Computer, communication & other services
imports, % services imports
Households’ w/personal computer, %
4.4
118
Government readiness
4.5
47
Broadband Internet subscribers/100 pop
0.6
100
Gov’t prioritization of ICT*
5.3
35
Internet user/100 pop
5.1
118
Gov’t procurement of advanced tech.*
3.5
75
Importance of ICT to gov’t vision*
4.6
32
Table 20: Network Readiness Index India
69
World Economic Forum Report
| 65
6.2. Country Data
BASIC DATA70
Land area
3,287,240 sq km (including Indian-administered Kashmir); 57% is agricultural land and 16%
forest area
Population
1.03 Billion (2001 Census), 1.18 Billion (est. April 2010)
Main towns
Population in millions, 2001 census
Mumbai (Bombay)
Kolkata (Calcutta)
Delhi
Chennai (Madras)
Bangalore
Hyderabad
70
71
16.4
13.2
12.8
6.4
5.7
5.5
Climate
Varied; humid subtropical in Ganges basin, semi-arid in north west, tropical humid in northeast and most of peninsula, all areas receive rain from the south-west monsoon in JuneSeptember; the south is also served by the north-east monsoon in January-March
Languages
Hindi is the national language and primary tongue of 30% of the population. There are 16
V[OLYVMÄJPHSSHUN\HNLZ!)LUNHSP;LS\N\4HYH[OP;HTPS<YK\.\QHYH[P4HSH`HSHT2HUUHKH
Oriya, Punjabi, Assamese, Kashmiri, Sindhi and Sanskrit, English is widespread in business
and as second language
Religion
2001 Census: Hindu (80.5%); Muslim (13.4%); Christian (2.3%); Sikh (1.9%) Buddhist (0.8%);
Jain (0.4%)
Measures
Metric system. Numbers are often written in Lakh (100,000) and Crores (10 Million)
Currency
Average exchange rate in 2010: INR 45.65 = USD 171
Exchange rate on 30 September 2011: INR 49.05 = USD 1
Fiscal year
April 1st- March 31st
Time
5 hours 30 minutes ahead of GMT
www.censusindia.gov.in, unstats.un.org, www.wikipedia.org, www.forecast-chart.com, www.x-rates.com
forecastchart.com/usd-indian-rupee.html
66 |
6.3. Demographic Trends
According to the 2001 census, India’s population stood at 1.027bn. Even under fairly optimistic assumptions about the pace of future
fertility decline, India’s population is likely reach 1.4bn by 2025.
The number of females per 1,000 males was 933; the difference is due to female infanticide, the neglect of female children and, lately
and the abortion of female foetuses. Population growth averaged 1.9% per year in 1991-2001, down from an average of 2.1% in 198191 and 2.3% in the 1960s.
India’s Middle Class
India’s Demographic Pyramid
6]LYVM[OLWVW\SH[PVU^PSSILJVUZPKLYLKTPKKSLJSHZZI`
0UKPH»Z`V\[OI\SNL^PSSMSH[[LUPUJVTPUN`LHYZ
(UU\HSOV\ZLOVSK
0UJVTL9Z[OV\ZHUKZ
.SVIHSZ%
:[YP]LYZ
4PKKSL
*SHZZ
:OHYLVMWVW\SH[PVU
:LLRLYZ
4HSL
-LTHSL
(ZWPYLYZ +LWYP]LK# JVUZ[HU[`LHYY\WLLZ
,
-
-
Source: McKinsey Global Institute
7VW\SH[PVUTPSSPVUZ
Source: US Census Bureau,
International Database
KEY GROWTH FACTORS
Following are the key factors that have led to the transformation of Indian economy and are helping it to become a destination for
all the global majors:

9PZPUNJVUZ\TLYZWLUKPUNHUKSHYNLKVTLZ[PJTHYRL[

.YV^[OVM:LY]PJLZ

0UKPHUTHU\MHJ[\YPUNLZ[HISPZOPUNP[ZLSMPU[OLNSVIHSHYLUH

7LY]HZP]LJVTT\UPJH[PVU!ZH[LSSP[LHUKJHISL;=TVIPSL[LSLWOVU`ÄILYVW[PJIYVHKIHUK

0UMYHZ[Y\J[\YLNYV^[O/PNO^H`7VY[ZHUK<YIHU;YHUZWVY[

+LTVJYH[PJHUKTH[\YLWVSP[PJHSZL[\W^P[OKL]LSVWTLU[HUKWYVPU]LZ[VYYLMVYTZHZP[ZJVYLHNLUKH

3HYNLWVVSVM`V\UN,UNSPZOZWLHRPUNHUKZRPSSLK^VYRMVYJL
The critical bottlenecks however are inadequate supply of infrastructure (especially power),
There is a large and growing middle class of more than 50 mn Indians with disposable income ranging from 200,000 to 1,000,000
Rupees per year (USD 4,444 to 22,222).
67 |
6.4. Key Macro-Level Risks
The associated risks are categorized into four sections as:
1. Economic Risks
2. Energy Risks
3. National Risks
Economic Risks
Following are the important trends which were observed:
,JVUVTPJ\UJLY[HPU[`!
The integration of India with the global economy has been steady
– the economy has shown correlation with the global sentiment.
0UÅH[PVU!
;OLPUÅH[PVUOHZILLUOPNOH[PU[OLSHZ[`LHYZ
*\YYLUJ`!
;OL0UKPHU9\WLLJVU[PU\LZ[VIL]VSH[PSL:PNUPÄJHU[Å\J[\H[PVUZ
ranging from INR 39/USD to INR 50/USD have created
uncertainties for import-export oriented businesses.
9LNPVUHSZV\YJLZVMPUZ[HIPSP[`!
The situation in the state of Jammu Kashmir and relationship of
India with the neighbour Pakistan is one of the major sources of
instability in the region. The continuous instability in Afghanistan
and along its border with Pakistan remains an additional source
VMPUZ[HIPSP[`PU[OLYLNPVU;OPZOHZSLK[VT\S[PWSLJVUÅPJ[ZHUK
increased defence budgets in South Asia.
India Advantage:
India is expected to continue in its superior growth trajectory
over the next decade. The growth of domestic demand backed
I` NYV^PUN 4PKKSL *SHZZ HSVUN ^P[O ZPNUPÄJHU[ PTWYV]LTLU[Z
in infrastructure and business environment since the economic
liberalization has made India a preferred market for Western
companies. On the downside however, there is volatile currency,
YPZPUN PUÅH[PVU PULMÄJPLU[ WV^LY KPZ[YPI\[PVU ]\SULYHIPSP[` [V
global crude oil price risks and a threat from terrorism
Land and Infrastructure:
The rapid economic growth of the last few years has put heavy
stress on India’s infrastructural facilities. The projections of
further expansion in key areas will have a further impact on the
strained lines of transportation. The key problems include power
KLTHUKZOVY[MHSSWVY[[YHMÄJJHWHJP[`TPZTH[JOHUKWVVYYVHK
conditions. Infrastructure projects are necessary to improve
rural-urban communications and facilitate inter and intra-state
ÅV^ZVMJVTTVKP[PLZHUKZLY]PJLZ
0UJYLHZLKU\TILYVM[LYYVYPZ[PUJPKLU[Z!
In the recent time there have been several fatal attacks carried
out in several cities including Delhi, Mumbai and Bangalore. Over
4,800 people were killed in terrorist attacks between 2004 and
mid-2008.
Energy Risks
0ULMÄJPLU[7V^LY!
More than 40% of India’s population (over 400 mn people), live in
the rural areas and they lack the access to electricity.
,ULYN`LMÄJPLUJ`PZHRL`JVTWVULU[VM[OLUH[PVUHSKL]LSVWTLU[
strategy.
0TWVY[KLWLUKLUJ`!
The production of crude oil has been stagnant which has led to
the dependency on crude oil imports with India importing more
than 70% of its oil. Increase in consumption pattern and rise in
VPSWYPJLZ^V\SKHKKTVYLWYLZZ\YL[V[OLJ\YYLU[HJJV\U[KLÄJP[
National Risks
7VSP[PJHSZ[HIPSP[`!
India is the largest democracy in the world and has multiple
party systems with predominance of regional political parties.
The parties differ in their political ideology which in turn depends
upon the region to which the party belongs to. In past several
decades no single party has been able to gain the majority of
seats in general elections and therefore coalition governments
have ruled the nation. However, excellent political consensus has
emerged within the country with respect to economic reforms
and progressive business regulation over last two decades
providing the stability required for growth.
| 68
6.5. Major Challenges & Concerns for ICT in Flare:
CHALLENGES
DESCRIPTION
Portability
Reduce effort required to support applications across heterogeneous platforms,
programming languages & variety of compilers
Flexibility
:\WWVY[HNYV^PUNYHUNLVMT\S[PTLKPHKH[H[`WLZ[YHMÄJWH[[LYUZHUKLUK[VLUK
quality of service requirements
Extensibility
Support successions of quick updates and additions to take advantage of new
requirements and emerging markets
7YLKPJ[HIPSP[`,MÄJPLUJ`
Provide low latency to delay-sensitive real-time applications & high performance to
bandwidth intensive ones
Reliability
Ensure that applications are robust, fault tolerant, and highly available
Quality
Ensure performance
Speed
Enable quick development and delivery of business critical applications
Scalability
Ensure that the system is scalable at state and national level of initiatives
Security
,UZ\YLZHMLÄUHUJPHS[YHUZHJ[PVUZ
Financial Viability
0M[OL[LJOUVSVN`THRLZ[OLI\ZPULZZÄUHUJPHSS`]PHISL
Organizational Capability
If the organization have adequate skills to handle the technology spread
Simplicity and Usability
The applications must be user friendly with little or no learning curve to the customer. The
customer must also be able to personalize the application to suit his or her convenience
Universality
Payment service must provide for transactions between one customer to another customer
(C2C), or from a business to a customer (B2C) or between businesses (B2B). The coverage
should include domestic, regional and global environments. Payments must be possible in
terms of both low value micro-payments and high value macro-payments
Interoperability
Development should be based on standards and open technologies that allow one
implemented system to interact with other systems
Security, Privacy and Trust
A customer must be able to trust a service provider that his or her credit or debit card
information may not be misused. Secondly, when these transactions become recorded
customer privacy should not be lost in the sense that the credit histories and spending
patterns of the customer should not be openly available for public scrutiny. Digital payments
have to be as anonymous as cash transactions. Third, the system should be foolproof,
resistant to attacks from hackers and terrorists. This may be provided using public key
infrastructure security, biometrics and passwords integrated into the mobile payment solution
architectures
Cost
;OL[LJOUVSVN`LUHISLKJOHUULSZMVYHJJLZZPUNÄUHUJPHSZLY]PJLZPUJS\KPUNWH`TLU[ZHUK
remittances should not be costlier than the existing payment mechanisms to the extent
WVZZPISL([LJOUVSVN`LUHISLKÄUHUJPHSZLY]PJLHS[LYUH[P]LZOV\SKJVTWL[L^P[OV[OLYTVKLZ
of payment in terms of cost and convenience
Speed
;OLZWLLKH[^OPJOÄUHUJPHS[YHUZHJ[PVUZHYLL_LJ\[LKT\Z[ILHJJLW[HISL[VJ\Z[VTLYZHUK
merchants
Table 21: Challenges for ICT solutions for Financial Inclusion
69 |
6.6. E-Governance Projects Initiated by
Government of India
SR. NO. AREA OF MMP
TYPE OF MMP
URL
1
Banking
Central MMP
http://mit.gov.in/content/banking
2
Central Excise & Customs
Central MMP
http://mit.gov.in/content/central-excise-customs
3.
Income Tax (IT)
Central MMP
http://mit.gov.in/content/income-tax-it
4.
Insurance
Central MMP
http://mit.gov.in/content/insurance
5
MCA21
Central MMP
http://mit.gov.in/content/mca21
6
National Citizen Database
Central MMP
http://mit.gov.in/content/national-citizen-database
7
Passport
Central MMP
http://mit.gov.in/content/passport-immigration-visa
8
Immigration, Visa and Foreigners
Registration& Tracking
Central MMP
http://mit.gov.in/content/ivfrt
9
Pension
Central MMP
http://mit.gov.in/content/pension
10
L6MÄJL
Central MMP
O[[W!TP[NV]PUJVU[LU[LVMÄJL
12
Agriculture
State MMP
http://mit.gov.in/content/agriculture
13
Commercial Taxes
State MMP
http://mit.gov.in/content/commercial-taxes
14
Lò+PZ[YPJ[
State MMP
http://mit.gov.in/content/e-district
15
Employment Exchange
State MMP
http://mit.gov.in/content/employment-exchange
16
Land Records
State MMP
http://mit.gov.in/content/land-records
17
Municipalities
State MMP
http://mit.gov.in/content/municipalities
18
Gram Panchayats
State MMP
http://mit.gov.in/content/panchayats
19
Police
State MMP
http://mit.gov.in/content/police
20
Road Transport
State MMP
http://mit.gov.in/content/road-transport
21
Treasuries
State MMP
http://mit.gov.in/content/treasuries
22
CSC
Integrated MMP
http://mit.gov.in/content/common-services-centers
23
e-Biz
Integrated MMP
http://mit.gov.in/content/e-biz
24
e-Courts
Integrated MMP
http://mit.gov.in/content/e-courts
25
e-Procurement
Integrated MMP
http://mit.gov.in/content/electronic-data-interchange-editrade-etrade
26
EDI For eTrade
Integrated MMP
http://mit.gov.in/content/nsdg
27
National e-governance Service
Delivery Gateway
Integrated MMP
http://mit.gov.in/content/india-portal
Table 22: List of MMPs (e-governance projects)
| 70
6.7. Fairs & Events
SOME IMPORTANT EVENTS FOR 2012
NAME
LOCATION
WEBSITE
DATE
ET-Asia ITEX
Mumbai
www.asiaitex.com/mumbai.html
07-Oct-11
Cloud Computing World Forum
Mumbai
www.cloudcomputinglive.com/india
12-Oct-11
International Conference on
Computational Intelligence and
Information Technology – CIIT 2011
Pune
ciit.engineersnetwork.org/2011
07-Nov-11
International Conference on Data
Management ICDM2011
Ghaziabad
www.imt.edu/icdm2011/index.html
17-Nov-11
International Trade fair and Seminar for
Banking Technology, Equipment and
Services
Mumbai
www.ibexindia.com/home.html
1-Dec-11
Indian Telecom
New Delhi
www.indiatelecom.org
7-Dec-11
IBEX India 2011
New Delhi
www.ifsecindia.com/exhibit/globalpartners.asp
08-Dec-11
World Congress on Information and
Communication Technologies (WICT
2011)
Mumbai
www.mirlabs.org/wict11/index.phpc=main&a=index.htm
11-Dec-11
E-commerce & Payments World India
2011
Mumbai
www.terrapinn.com/conference/ecommercepayments-india/
05-Jan-12
Frontier Global Issues and Challenges
in the
New Millennium on Emerging Economy,
Accounting,
Finance, Information & Communication
Technology,
Business & Management
Jaipur
www.rdaindia.net/download/RDA_Conference.
pdf
05-Jan-12
National Conference on Business
Analytics and Business Intelligence
Hyderabad
www.ncbia.ipeindia.org
6-Jan-12
2012 4th International Conference on
Computer and Automation Engineering
“ICCAE 2012”
Mumbai
www.iccae.org
15-Jan-12
Indian Digital Summit & Indian Digital
Awards
New Delhi
International Conference on Cloud
Computing
Bangalore
www.interscience.ac.in/ICCC/index.html
29-Jan-12
Internet Retail Expo
New Delhi
www.biztradeshows.com/internet-retail-expo
02-Feb-12
ET-Asia ITEX
New Delhi
www.biztradeshows.com/etasia-itex-newdelhi
12-Feb-12
IT INDIA FAIR 2012
New Delhi
www.eventseye.com/fairs/f-it-indiafair-11451-1.html
12-Mar-12
Convergence India
New Delhi
www.convergenceindia.org
21-Mar-12
71 |
18-Jan-12
6.8. Regulatory & Trade Bodies
TYPE OF ASSOCIATION
NAME
WEBSITE
Regulatory
Department of Telecommunications(under Ministry
of IT and Communications)
www.mit.gov.in
Trade Association
Electronics and Computer Software Export
Promotion Council (ESC) (External website that
opens in a new window)
www.escindia.in
Trade Association
Software Technology Park of India
www.stpi.in/index.html
Trade Association
Nasscom
www.nasscom.in
Trade Association
CII (Confederation of Indian Industry)
www.ciionline.org
Trade Association
Manufacture Association of Information
Technology
www.mait.com
Trade Association
FICCI (Federation of Indian Chamber of
Commerce & Industry)
^^^ÄJJPJVT
Trade Association
All India Association of Computer Centres & IT
Professionals
aiita.org
Trade Association
Trade Association of Information Technology (TAIT)
^^^[HP[T\TIHPJVTWYVÄSLO[TS
Trade Association
Indian Chamber of Commerce
www.indianchamber.org/default.aspx
Trade Association
The Associated Chambers of Commerce and
Industry in India
www.assocham.org/sectors/index.php
Regulatory
Telecom Regulatory Authority of India (TRAI)
www.trai.gov.in/Default.asp
Trade Association
CMAI Association of India
www.cmai.asia
Trade Association
COAI (Cellular Operators Association in India)
www.coai.com
Trade Association
Telecom Equipment Manufacturers Association of
India
www.tematelecom.net
Trade Association
India-tech foundation
www.india-tech.com
Trade Association
7HJPÄJ;LSLJVTT\UPJH[PVUZ*V\UJPS0UKPH
Foundation
www.ptcif.org.in
Trade Association
IAMAI (Internet and Mobile Association of India)
www.iamai.in/introabout.aspx
Trade Association
(ZZVJPH[PVUVM<UPÄLK;LSLJVT:LY]PJLWYV]PKLYZ
of India (AUSPI)
www.auspi.in
IT/ITES
Telecom
INTERNET AND BROADBAND
Regulatory
Telecom Regulatory Authority of India (TRAI)
www.trai.gov.in/Default.asp
Trade Association
Internet Service Providers of India,
www.ispai.in
Trade Association
www.iamai.in/default.aspx
Medical Council of India
www.mciindia.org
HEALTHCARE
Regulatory
| 72
Regulatory
Central Drugs Standard Control Organization
www.cdsco.nic.in
Regulatory
Ministry of health and family welfare
www.mohfw.nic.in
Regulatory
Voluntary Healthcare Association of India
www.vhai.org
Trade Association
Indian Association of Medical Informatics
www.iami.org.in
GAMING AND ANIMATION
Trade Association
iGITA (Indian Games Industry and Trade
Association)
Trade Association
Advertising Agencies Association of India (AAAI)
www.aaaindia.org
5V[MVY7YVÄ[6YNHUPaH[PVU
Indian Documentary Producers’ Association(IDPA)
www.idpaindia.org
Regulatory
University Grants Commission
www.ugc.ac.in
Regulatory
National Council for Educational Research and
Training
www.ncert.nic.in
Trade Association
All India Association for Educational Research
www.aiaer.net
Trade Association
Indian Adult Education Association
www.iaea-india.org
Trade Association
CII (Confederation of Indian Industry)
www.ciionline.org
Trade Association
IMTMA (Indian Machine Tools Manufacturers’
Association)
www.imtma.in
Trade Association
Indian Paper Manufacturers Association (IPMA)
www.ipma.co.in
Trade Association
Society of Indian Automobiles Manufacturer
(SIAM)
www.siamindia.com
Trade Association
Cements Manufacturers’ Association (CMA)
www.cmaindia.org
Trade Associations
Indian Electrical & Electronics Manufacturers
Association
www.ieema.org
Trade Associations
All India Association of Industries
www.aiaiindia.com
Regulatory
Insurance Regulatory and Development Authority
(IRDA)
www.irda.gov.in/Defaulthome.aspx?page=H1
Regulatory
Securities and Exchange Board of India (SEBI)
www.sebi.gov.in/sebiweb
Regulatory
Reserve Bank of India (RBI)
www.rbi.org.in
Regulatory
Forward Market Commission
www.fmc.gov.in/index.htm
Trade Associations
Indian Banks organisation
www.iba.org.in
Trade Associations
Insurance Bankers Association of India
www.ibai.org
Trade Associations
General Insurance Council
gicouncil.in/default.asp
Fairs/Symposium
International Banking Technology Conference,
Expo & Award
www.iba-banktech.com/index.htm
Regulatory
Department of IT and Communications
http://www.mit.gov.in
Regulatory
Indian Computer Emergency Response Team
www.cert-in.org.in
Education
MANUFACTURING
BANKING AND INSURANCE
SECURITY
73 |
Trade Associations
Data Security Council of India
www.dsci.in/taxonomypage/1
www.iamai.in/introabout.aspx
Government/Promotion Body
National Agricultural Innovation Project (NAIP)
www.ekrishinaip.in/index.php/home
Government/Promotion Body
e-agriculture
www.e-agriculture.org/e-agriculture
E-COMMERCE
Trade Association
AGRICULTURE
BIOINFORMATICS
Education/promotion Body
All India Biotech Association
Bioinformatics Association of India (BAI)
indiabioinfo.webs.com
Bioinformatics Institute of India (BII)
www.bii.in/index.html
Institute of Bioinformatics
www.ibioinformatics.org
| 74
6.9. Abbreviations
ABBREVIATION
FULL FORM
2D
Two Dimensions
3D
Three Dimensions
3G
Third Generation
AAAI
Advertising Agencies Association of India
AMI
Advanced Metering Infrastructure
ARPU
Average Revenue per User
ATM
Automated Teller Machine
AUSPI
(ZZVJPH[PVUVM<UPÄLK;LSLJVT:LY]PJLWYV]PKLYZVM0UKPH
B2B
Business to Business
B2C
Business to Consumer
BAI
Bioinformatics Association of India
BC
Business correspondents
BFSI
Banking, Financial Services and Insurance
BI
Business intelligence
BII
Bioinformatics Institute of India
bn
Billion
BOOT
Build Own Operate Transfer
BPM
Business Process Management
BPO
Business Process Outsourcing
BRIC
Brazil, Russia, India, China
BWA
Broadband Wireless Access
C2C
Consumer to Consumer
CAD
Computer Aided Design
CAGR
Compound Annual Growth Rate
CAM
Computer Aided Manufacturing
CAT
Customer-Activated Terminal
CBS
Core Banking Solutions
C-DAC
Centre for Development of Advanced Computing
CDMA
Code Division Multiple Access
CD-ROMs
Compaq Disc – Read only memory
CEERI
Central Electronics Engineering Research Institute (CEERI), Pilani
CERT-In
Indian Computer Emergency Response Team
CII
Confederation of Indian Industry
CIIT
Computational Intelligence and Information Technology
C-MET
Center for Materials for Electronics Technology
75 |
CMA
Cement Manufacturers Association
CMM
Capability Maturity Model
COAI
Cellular Operators Association in India
CPOE
Computerised Physician Order Entry
CPU
Central Processor Unit
CRAMS
Contract Research and Manufacturing Services
CRM
Customer Relationship Management
CRO
Contract research organizations
CSC
Common Services Centres
CSIR labs
*V\UJPSVM:JPLU[PÄJHUK0UK\Z[YPHS9LZLHYJO
DECT
Digital Enhanced Cordless Telecommunications
DLP
Data Loss Prevention
DMSS
Distribution Marketing Sales and Services
DSCI
Data Security Council of India
DSS
Decision Support System
DTA
Domestic Tariff Areas
DVD
Digital Versatile Disk
E- Governance
Electronic Governance
EASIEST
Electronic Accounting System in Excise and Service Tax
E-commerce
Electronic Commerce
ECS
Electronic Clearing Service
EDI
Electronic Data Interchange
EFTPOS
Electronic Fund Transfer at Point of Sale
EHR
Electronic Health Record
EHTP
Electronics Hardware Technology Park
EMR
Electronic Medical Record
EMS
Electronic Management System
EOU
Export Oriented Unit
EPCG
Export Promotion Capital Goods scheme
,7A
,SLJ[YVUPJ7YVJLZZPUNAVULZ
ERNET
Education and Research Network
ERP
Enterprise resource planning
ESC
Electronics and Computer Software Export Promotion Council
ET
Economic Times
EU
European Union
FDI
Foreign Direct Investment
FI
Financial Inclusion
FICCI
Federation of Indian Chamber of Commerce & Industry
| 76
FIT
Funds in transit
FMT
Financial Management Trainings
FY
Financial Year
GDP
Gross Domestic Product
GPRS
General Packet Radio Service
GRC
Governance, Risk and Compliance
GSM
Global System for Mobile Communication
HFC
Housing Finance Companies
HH
Household
HIE
Health Information Exchange
HIPAA
Health Insurance Portability and Accountability Act
HIPS
Host-based Intrusion Prevention System
HIS
Healthcare Information System
HR
Human Relations
HRM
Human Resources Management
IaaS
Infrastructure as a Service
IAMAI
Internet and Mobile Association of India
ICCAE
International Conference on Computer and Automation Engineering
ICDM
International Conference on Data Management
ICT
Information & Communication Technology
IDS
Intrusion Detection System
IES
Indian Education Sector
iGITA
Indian Games Industry and Trade Association
IIITs
Indian Institute of Information Technology
IISc
Indian Institute of Science
IITs
Indian Institute of Technology
ILD
International Long Distance
IMPS
Interbank Mobile Payments Service
IMTMA
Indian Machine Tools Manufacturers Association
INR
Indian National Rupee
IP
Intellectual Property
IPMA
Indian Papers Manufacturers India
IPR
Intellectual Property Rights
IPS
Intrusion Protection System
IPsec
Internet Protocol Security
IP-VPN
IP-based virtual private network
IRDA
Insurance Regulatory and Development Authority
ISO
Indian Standards Organisation
77 |
IT
Information Technology
ITC (HS)
0UKPHU;YHKL*SHZZPÄJH[PVU/HYTVUPZLK:`Z[LT
ITeS
Information Technology enabled Services
ITIRs
Information Technology Investment Regions
IVRS
Interactive Voice Response System
K 12
Primary and Secondary School
KPO
Knowledge Process Outsourcing
LED
Light Emitting Diode
LIMS
Laboratory Information Management System
MCA21
Ministry of Corporate Affairs
MFI
4PJYVÄUHUJL0UZ[P[\[PVUZ
MHRD
Ministry of Human Resource Development
MMOG
Massive Multiplayer Online Games
MMP
Mission Mode Projects
mn
Million
MNC
Multinational National Corporation
MNE
Multinational Enterprise
MPLS
Multi-Protocol Label Switching
MRP
Material Requirement Planning
MSME
Micro, Small and Medium Enterprise
MSS
Managed Security Services
NAIP
National Agricultural Innovation Project
NBFC
Non Banking Financial Companies
NEFT
National Electronic Funds Transfer
NeGP
National e-Governance Plan
NFE
Non-Formal Education
NG-RTGS
Next Generation Real Time Gross Settlement
NHIN
National Health Information Network
NIPS
Network-based Intrusion Prevention System
NLD
National Long Distance
NRI
Network Readiness Index
ODL
Open & Distance Learning
OECD
Organisation for Economic Cooperation and Development
OLTAS
Online tax accounting system
PaaS
Platform as a Service
PACS
Picture Archiving and Communication System
PC
Personal Computers
PCO
7\ISPJ*HSS6MÄJLZ
| 78
POS
Point of Sale
POT
Point of Transaction Terminal
PPP
Public Private Partnership
PSTN
Public Switched Network Telephone
R&D
Research and Development
RACS
Reconciliation Accounting and Cash Settlement
RBI
Reserve Bank of India
REC
Regional Engineering Colleges
RFID
9HKPV-YLX\LUJ`0KLU[PÄJH[PVU
RRB
Regional Rural Banks
RTGS
Real Time Gross Settlement
SaaS
Software as a Service
SEBI
Securities and Exchange Board of India
:,A
:WLJPHS,JVUVTPJAVULZ
SHG
Self Help Groups
SIAM
Society of Indian Automobile Manufacturers
SMB
Small and Medium Businesses
SME
Small & Medium Enterprises
SMS
Short Messaging Service
SSA
Sarva Shiksha Abhiyan
SSL
Secure Socket Layer
STP
Software Technology Park
Telecom
Telecommunication
TAIT
Trade Association of Information Technology
TPA
Third Party Auditor
TRAI
Telecom Regulatory Authority of India
UIDAI
<UPX\L0KLU[PÄJH[PVU(\[OVYP[`VM0UKPH
UK
United Kingdom
USA
United States of America
USD
United States Dollar
UTM
<UPÄLK;OYLH[4HUHNLTLU[
VAS
Value Added Services
VFX
Visual Effects
VoIP
Voice over Internet Protocol
VPT
Village Public Telephones
WICT
World Congress on Information and Communication Technologies
WiMAX
Worldwide Interoperability of Microwave Access
Table 23: Abbreviations
79 |
7. List of Tables
Table 1: Structure of Indian IT-BPO Industry
Table 2: Key Trends for Growth of IT-BPO Industry in India
Table 3: Electronic Hardware Industry CAGR
Table 4: Domestic ICT Clusters
;HISL!:WLJPÄJ[YLUKZWVPU[PUN[VNYV^[OVM0*; Table 6: Top 10 Business and Technology Trends for ICT in India
Table 7: Growth Path for mobile enterprise applications, 2011
Table 8: Key Focus Areas for ICT
Table 9: Healthcare Sector Status
Table 10: Indian Education Sector Structure34
Table 11: Drivers, Risk and Key Players in ICT in non-formal Education Sector
Table 12: ICT in Government Schools Opportunity
Table 13: Vocational Training Market Segment
Table 14: Value Added Services (VAS) Market Share
Table 15: Indian Security Market
Table 16: Bioinformatics Vendor capabilities by category in India
Table 17: Opportunities foe Swiss SMEs
Table 18: Key Requirement for Entering India Market
Table 19: Sector-wise Key Opportunities in Indian ICT Sector
Table 20: Network Readiness Index India
Table 21: Challenges for ICT solutions for Financial Inclusion
Table 22: List of MMPs (e-governance projects)
Table 23: Abbreviations
7
8
9
13
16
20
22
23
29
30
31
31
38
46
54
57
61
63
65
69
70
75
| 80
8. List of Figures
Figure 1: Indian IT sector Revenues
Figure 2: Indian IT Sector Export Revenue
Figure 3: Indian IT Market Domestic Market Revenue
Figure 4: Composition of Industry Verticals in IT Exports
Figure 5: Major IT Export Destination
Figure 6: Demand Supply Gap and Projected Growth of Electronics Industry
Figure 7: Gross Revenue Indian Telecom Sector
Figure 8: Applications that are being ported to mobility platforms
5
6
6
7
7
9
10
20
Figure 9: Healthcare Market Breakup
Figure 10: ICT for Education Ecosystem
Figure 11: Teledensity in Wireless and Landline
Figure 12: Telecom Urban – Rural Divide
Figure 13: Wireless Subscribers Forecast and GSM – CDMA Divide
Figure 14: Internet and Broadband Subscribers
Figure 15: Broadband subscribers Forecast
Figure 16: VAS Market Size
Figure 17: Payment Flow as times of GDP
Figure 18: Security Product Market in FY10
Figure 19: Indian Security Services Market: Share of Companies
Figure 20: Global Spam Scenario
Figure 21: E-commerce Market in India
Figure 22: E-market Sectoral Share
Figure 23: Public Sector Spending on IT
23
30
36
36
37
37
38
38
42
46
46
47
49
49
51
| 81
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